On August 28, Solstice Advanced Materials Inc rose 11.09% overnight, trading at $62.59/share, with turnover of $4,256.12. The rally was driven by the company's announcement that it and Element Solutions mutually agreed to terminate their previously announced merger agreement, with neither party required to pay a termination fee.

Simultaneously, the company authorized a $500 million share repurchase program and affirmed its previously announced Q3 and full-year guidance. The original deal, announced in early July, would have seen Solstice acquire Element Solutions for $14.5 billion, creating a roughly $27 billion specialty chemicals entity. The termination removes integration risk and leverage concerns associated with the $47 billion bridge loan commitment from Goldman Sachs, while the substantial buyback program signals management confidence in standalone intrinsic value.

The company had previously reported Q2 adjusted EBITDA of $290 million, beating consensus by approximately 4.28%, and guided full-year net sales of $4.13B-$4.19B, above the FactSet estimate of $4.08B, with adjusted EPS of $2.75-$2.95 versus the $2.67 estimate.

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