CNBC’s Jim Cramer strongly endorsed a potential merger between Honeywell International‘s (NASDAQ:HON) spinoff Solstice Advanced Materials Inc. (NASDAQ:SOLS) and Element Solutions Inc. (NYSE:ESI) on Monday.
Cramer Backs Megamerger
Reacting to financial reports of a $27 billion tie-up, Cramer stated that shares of both companies could “go higher” because the combination “would create a chemical tech powerhouse.” He ultimately labeled the ongoing negotiations a “really smart deal.”
Inside The $27 Billion Talks
The Financial Times reported that Solstice is in advanced discussions to merge with Element Solutions in a transaction valued at approximately $27 billion, including debt.
Their sources indicated that the entities are discussing a “merger of equals.” The final deal is expected to be “mostly stock-based with some cash” and could come together as soon as this week. However, insiders noted that no formal agreement has been reached and negotiations could still collapse.
Capitalizing On The AI Infrastructure Boom
The consolidation interest arrives as both corporations experience surging global demand for proprietary specialty chemicals. These materials are critical to cooling AI data centers and advancing semiconductor electronic manufacturing.
Solstice recently noted that a massive need for its thermal management and refrigerant products in “AI-driven data centers” is fueling its financial growth.
Concurrently, Element Solutions, which supplies electronics manufacturing chemicals, reported over 40% growth in first-quarter revenue this year, driven primarily by “AI-related demand.”
Surging Wall Street Momentum
Public data shows Solstice currently holds a market value of about $12.73 billion, while Element Solutions is valued at $10.63 billion. Both stocks have heavily outperformed the broader market this year.
ESI shares have surged 73.63% year-to-date, 2.32 over the last month, and 81.46% over the year. It was trading 1.97% higher in premarket trading on Monday.
Benzinga’s Edge Stock Rankings indicate that ESI maintains a strong price trend in the long, short, and medium terms, with a good growth score.
Meanwhile, Solstice shares have risen 65.07% YTD, down 8.24% over the month, and 52.02% higher over the year. It was down 7.65% in premarket trading on Monday.
Benzinga’s Edge Stock Rankings indicate that SOLS maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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