Microprocessor giant Intel has been forced to call off a €4.75-billion acquisition of Israeli chip manufacturer Tower Semiconductor after China failed to approve the deal.
The two companies announced on Wednesday that the cancellation was a mutual decision between them.
Intel explained that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”
Intel and Tower Semiconductor had agreed on the acquisition at the price of $53 a share, for a total of $5.4 billion (€4.75 billion). The deal was expected to close within a year, after receiving the go-ahead from the authorities and Towers’ shareholders.
The respective boards of directors had been unanimous in their support for the agreement, which would have enabled Intel to achieve its aim of boosting its production capacity, against the backdrop of a worldwide shortage of semiconductors since the post-Covid recovery. Tower is already active in the USA and Asia.
The acquisition required approval from a number of regulators worldwide, including in China. However, Chinese regulators failed to approve it by a Wednesday deadline.
