Solstice, Element terminate $14.5 billion merger deal
SOLS•Buyback, forecast and market reaction
Solstice added that its board authorized a share repurchase program of up to $500 million, its first such buyback plan.
The Honeywell spinoff also reaffirmed its recently raised forecast, saying strong cash flow and its balance sheet would support investment in organic growth initiatives as well as capital returns to shareholders.
Shares of Element Solutions were up 4% after the bell, while Solstice shares were up 15%.
"The termination of the proposed transaction is a direct response to that (shareholders and stakeholders) feedback," Benjamin Gliklich, the executive chief of Element Solutions said, adding the company remained focused on operational performance, capital allocation and product development.
What the combination would have created
The completed deal would have combined Solstice's refrigerants, specialty materials and uranium-conversion operations with Element's electronics chemicals business, creating a bigger supplier to the semiconductor, electronics and industrial markets.
Deal terminated after shareholder feedback
Aug. 27 (Reuters) - Honeywell spinoff Solstice SOLS.O is shelving its $14.5 billion deal to buy Element Solutions ESI.N, the companies said on Thursday, scrapping a merger that would have created a major supplier of chemicals for semiconductor manufacturing.
Neither company will pay a termination fee, Solstice said.
