Solstice Advanced Materials is in talks to merge with Element Solutions in a deal that would create a specialty-materials company worth about $27bn, according to a Financial Times report.
The two would combine as a merger of equals, the paper says, and could reach an agreement as soon as this week, though nothing has been signed and talks of this kind have a way of falling apart. It would be an unusually quick second act for a business that only became independent from Honeywell last autumn.
Solstice arrived on the Nasdaq at the end of October 2025, spun out as part of the wider breakup of the old industrial conglomerate. It is not a technology company in the obvious sense, but its products sit close to several things the sector cares about.
Roughly a quarter of its sales come from electronic and specialty materials, the chemistries used in chip fabrication and precision manufacturing, while the larger share comes from low-warming refrigerants.
Those refrigerants are more relevant to the AI story than they first appear. Products such as R-454B are in demand precisely because data centres and electric vehicles need efficient cooling, and the heat generated by AI compute has turned thermal management into a genuine constraint. A company that makes both the coolant and the electronic materials is exposed to the same build-out from two directions.
