China does Intel a small favor

Tower Semiconductor

16/08/2023 17:03

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Aug 16 (Reuters Breakingviews) - The chipmaker
aborted its $5 bln acquisition of Tower Semiconductor after
failing to secure approval from Beijing. The questionable deal
was made worse by the target’s struggles. And given the
cross-border tech tension, a $350 mln break fee at this stage is
a small price to pay.
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    CONTEXT NEWS
    Chipmaker Intel said on Aug. 16 that it had mutually agreed
to terminate its $5.4 billion acquisition of Tower
Semiconductor, owing to an inability to secure regulatory
approval before their merger agreement expired. Intel will pay a
$353 million termination fee to Tower. 

 (Editing by Jeffrey Goldfarb and Sharon Lam)
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