Intel terminates plan to buy Tower Semiconductor (updated)

Tower Semiconductor

16/08/2023 08:24

(Adds details from the statement in paragraph 1-3, background
in paragraph 4)
       Aug 16 (Reuters) - Intel  INTC.O  said on Wednesday it
has terminated its plans to acquire Israeli contract chipmaker
Tower Semiconductor  TSEM.TA  as it was unable to get timely
regulatory approvals for the $5.4 billion deal. 
        Intel, which 
    signed
     a deal to buy Tower last year, will pay a termination fee
of $353 million to the latter, according to a statement.
  
        Intel, however, did not mention the details about the
regulatory approvals.
  
        Reuters had 
    reported
     late on Tuesday citing sources that Intel did not secure
approval from Chinese regulators for the acquisition on time as
required under the contract. 
  
        
  

 (Reporting by Anirudh Saligrama in Bengaluru; Editing by Savio
D'Souza and Nivedita Bhattacharjee)
 ((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on
Twitter;))