Honeywell spinoff Solstice Advanced Materials is in talks to merge with Element Solutions in a deal that could create a chemicals company valued at about $27 billion including debt, the Financial Times reported Monday. The merger of equals would combine two specialty chemicals makers benefiting from rising demand tied to AI data centers and semiconductor manufacturing.
Honeywell spinoff Solstice Advanced Materials is in talks to merge with Element Solutions in a deal that would create a chemicals company valued at about $27 billion including debt, the Financial Times reported Monday.
"The deal would likely be a merger of equals, predominantly involving stock, and could be finalized as early as this week," the FT reported, citing people familiar with the negotiations.
Solstice, which separated from Honeywell last year, has a market value of about $12.73 billion, while Element Solutions is valued at roughly $10.63 billion, according to LSEG data. The combined entity would have a total enterprise value of approximately $27 billion including debt. No binding agreement has been reached, and discussions remain tentative.
The potential merger comes as both companies benefit from surging demand for specialty chemicals used in AI data centers and semiconductor fabrication. A deal would mark one of the largest chemical sector consolidations in recent years, creating a combined player with enhanced scale to compete for supply contracts in the fast-growing electronics manufacturing market.
Both companies have declined to comment on the reports. Solstice produces specialty chemicals for industries including semiconductors and healthcare, and has seen demand accelerate alongside advances in AI technology. Element Solutions has reported significant growth this year driven by similar trends in electronics manufacturing. The deal would require regulatory approvals, though the specific agencies involved have not been disclosed.
This article is for informational purposes only and does not constitute investment advice.
