Intel is terminating a $5.4 billion agreement to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid deteriorating US-China relations.
It was a mutual decision between Intel and Tower, the companies said Wednesday. Intel said that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”The deal required regulatory approval from several regulators worldwide including China, but Chinese regulators did not greenlight the deal by the Aug.
In response, China’s antitrust regulator, the State Administration for Market Regulation, appears to have dragged its feet on approving mergers involving American companies, such as the Intel-Tower deal. Tower’s stock price fell more than 11% in pre-market trading in the U.S. The company’s stock price in Tel Aviv also plunged over 10%.
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