The proposed acquisition of Element Solutions Inc (NYSE: ESI) by Solstice Advanced Materials, Inc. has prompted investigations by several shareholder rights law firms, with a focus on the fairness of the deal's price and process.

Element Solutions is a global specialty chemicals company operating in two main segments: Electronics and Specialty. The Electronics segment provides specialty chemical products and process technologies for printed circuit board design and advanced semiconductor packaging. The Specialty segment serves high-value niche markets, including semiconductor manufacturing, power transmission infrastructure, and space applications. The company employs approximately 5,200 people and is headquartered in Miami Beach, Florida.

Under a merger agreement signed on July 6, 2026, shareholders of Element Solutions will receive $10.00 in cash plus 0.500 shares of Solstice common stock for each share they own. Upon completion of the transaction, Element Solutions shareholders are expected to own approximately 44% of the combined company.

Several law firms have initiated investigations, focusing on whether the board of directors at Element Solutions fulfilled its fiduciary duties. Key areas of scrutiny include whether the board sought the best possible price, conducted a fair sales process, and whether company insiders are receiving benefits not available to common shareholders. One firm noted that significant termination fee provisions in the deal agreement could unreasonably limit Element Solutions' ability to accept superior competing offers.

The investigations aim to determine if the transaction undervalues Element Solutions and may seek to secure increased consideration for shareholders or pursue other legal actions to protect shareholder interests. The deal remains subject to customary closing conditions, including approval by shareholders and regulatory clearances.