Solstice Advanced Materials

Solstice and Element mutually terminated their $14.5 billion merger after shareholder feedback favored independence; neither side will pay a termination fee. Solstice authorized its first-ever share buyback of up to $500 million and reaffirmed raised guidance, while its shares jumped in after-hours trading. Element and Solstice each reported strong quarterly results but forgo the scale and synergy benefits the combination targeted. Investors will watch whether both companies can sustain growth and improve profitability as standalone firms. » More on finance.yahoo.com

Solstice Advanced Materials said it had mutually terminated the planned $14.5 billion merger with Element Solutions without breakup fees and simultaneously approved an initial share buyback program of up to $500 million. The announcement, coupled with confirmation and an upward revision of full-year guidance after a strong second quarter, sent the stock up 13.2% in after-hours trading to $63.76. CEO David Sewell called the buyback an expression of confidence in the long-term strategy and disciplined capital allocation. The price rise was company-specific and not due to macroeconomic tailwinds. » More on de.investing.com

Solstice has announced a definitive agreement to acquire Element Solutions for about $14.5 billion (including net debt). Element shareholders will receive $10.00 in cash plus 0.500 common shares of Solstice per share, implying consideration of roughly $50.10; the stock component sparked dilution concerns and a roughly 6.5% premarket decline in Solstice shares. A committed $4.7 billion bridge financing from Goldman Sachs was arranged to fund the deal, which is expected to raise net leverage to about 3.5x; management, however, targets reducing leverage below 3x within 18 months, delivering adjusted EPS accretion in year one and annual net synergies of over $180 million by year three. » More on de.investing.com