On July 29, Element Solutions fell 5.05% in regular trading, trading at $35.97 per share with turnover of $174 million. Despite a strong Q2 earnings beat, the stock declined due to its price linkage with acquirer Solstice Advanced Materials, which dropped 5.41% on the same day.

Element Solutions reported Q2 adjusted EPS of $0.47, beating the consensus estimate of $0.43 by 9.3%, while revenue came in at $977.9 million versus the $873.2 million expected — a 56% year-over-year increase. The company guided Q3 adjusted EBITDA at $180 million and raised full-year EBITDA guidance to $690–$710 million.

However, the stock is effectively anchored to Solstice's share price following the announced $14.5 billion acquisition, under which ESI shareholders will receive approximately $33 per share in a cash-and-stock combination, with stock comprising the majority. ESI shareholders will hold roughly 44% of the combined entity post-merger. Additionally, multiple law firms are investigating the fairness of the transaction price, raising concerns about whether the deal adequately reflects Element Solutions' intrinsic value.

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