Shares of Solstice Advanced Materials soared early Friday after the company called off a dramatic acquisition that would have turned the company into even more of an AI play.

In early July, Solstice announced a cash and stock deal to buy Element Solutions. Element makes products used in semiconductor manufacturing. Solstice produces refrigerants as well as uranium hexafluoride, an intermediate product in the process of making nuclear reactor fuel. Together, the companies would supply three legs of the AI value chain: The chips, the data centers, and the power that makes everything work.

It was a significant step for Solstice, which recently spun out of Honeywell Technologies, essentially doubling its size. Investors didn't like the deal, though. Solstice stock was trading above $80 before the announcement. It was below $57 heading into Friday trading. Element stock was north of $42 before the announcement. It closed on Thursday at $36.52.

Stock performance might be one reason why the deal was called off. Investors might have also worried about added debt or the ability of a new company to integrate a large, different business. "Following conversations with our shareholders and discussions between the parties, both Boards unanimously believe that it is in the best interests of our respective shareholders, employees and customers to terminate the merger agreement," said Rajeev Gautam, chairman of the Solstice board of directors, in a news release.

"While we viewed the Element acquisition as an opportunity to accelerate our strategy, we have great confidence in our strategic plan and respect our shareholders' views," said Solstice CEO David Sewell.

His company also announced a $500 million share repurchase. Shares were up 15% in early trading on Friday at $64.80, while S&P 500 futures were down 0.1%. Element stock was up 3.4%.

Investors wanted both companies to remain separate. They got what they wanted. Time will tell if that was the best outcome for both.