2023-08-16 14:19:35
US semiconductor company Intel abandoned plans to acquire Israeli chip maker Tower Semiconductor following failing to obtain Chinese approval.
Intel announced on the 16th that it was withdrawing its acquisition plan because it might not obtain the necessary regulatory approval for the merger and acquisition agreement.
Combinations between semiconductor companies must pass screening by the antitrust authorities of semiconductor stakeholders, such as the United States, the European Union (EU), and China.
China did not approve the transaction until the previous day (15th), the contract completion date.
In February of last year, Intel announced that it had agreed to acquire Tower for $5.4 billion.
Intel and Tower announced on the 16th that they had decided to terminate the transaction by mutual agreement.
Intel said it would pay a $353 million cancellation fee to the tower as the deal fell through.
The deal between the two companies came amid rising tensions between the US and China.
After the United States restricted exports of semiconductor equipment to China, President Joe Biden signed an executive order on the 9th to restrict US capital’s direct investment in China in high technology.
On this day, Tower’s share price fell more than 11% before the opening of the US stock market, and also fell more than 10% on the Tel Aviv Stock Exchange.
Tower is an Israeli company, but is listed on NASDAQ.
VOA News
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