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HomeLatest NewsIntel pulls out of Tower Semiconductor acquisition for lack of clearance

Intel pulls out of Tower Semiconductor acquisition for lack of clearance

Date: June 20, 2024 Time: 11:07:44

Failed agreement between Intel and Tower Semiconductor. The American microprocessor giant and the Israeli manufacturer of analog chips and integrated circuits Tower Semiconductor cancel their purchase agreement. This has been confirmed by Intel, where it has warned of the termination of the agreement made in February 2022 for 5,400 million dollars (4,945 million euros) after not obtaining the required regulatory approvals in a timely manner.

In accordance with the terms of the merger agreement and in connection with its termination, Intel will pay Tower an indemnity for the termination of the purchase agreement of 353 million dollars (323 million euros). “We will continue to look for opportunities to work together in the future,” said Pat Gelsinger, Intel CEO.

After a first agreement

The agreement dates back to the beginning of last year when both companies decided to start a relationship through an operation that was expected to close in the course of the next twelve months, that is, in 2023.

The operation, approved unanimously by the boards of directors of both companies, contemplated the payment of 53 dollars in cash for each share of Tower Semiconductor, which represented a premium of 60% compared to the price of the company’s shares in the session from that moment.

The Santa Clara company intended to finance the acquisition with cash from its balance and was confident that the transaction would immediately increase earnings per share.

“Tower’s Specialized Technology Portfolio, Geographic Reach, Deep Customer Relationships And Priority Operations Will Help Escalar Escalar Escalar Escalar Escalar Escalar OS Services Intel Foundry And Advancing Our Goal To Become A A Foundry Capable Supplier Globally,” Pat Gelsinger, Intel CEO said.

“This agreement will enable Intel to offer a compelling array of cutting-edge nodes and specialty technologies differentiated into mature nodes, unlocking new opportunities for current and future customers in an era of unprecedented demand for semiconductors,” he added. An agreement that has not finally been carried out due to problems related to the required compliance and that the multinational has not been able to deal with.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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