DuPont Scraps $5.2 Billion Rogers Deal After China Review
(Bloomberg) -- DuPont called off its planned $5.2 billion acquisition of engineering materials maker Rogers Corp., saying it was unable to get timely clearance from regulators.
DuPont de Nemours Inc. said it will pay a breakup fee of $162.5 million to Chandler, Arizona-based Rogers, whose shares plunged as much as 46% after the close of regular trading. DuPont's brief statement was issued a day short of the one-year anniversary of the deal's announcement.
While Tuesday's statement didn't specify which “required regulators” hadn't cleared the transaction, DuPont previously identified China's State Administration for Market Regulation, SAMR, as the last remaining hurdle for deal approval. The scuttling comes as mounting tensions between the US and China spill into industry as both governments vie for preeminence in key sectors such as semiconductors, advanced batteries for electric cars and artificial intelligence.
Representatives for the two companies declined to comment beyond the statement.
China has been wielding its power over the mergers of foreign companies with increasing force in recent years. In 2018, US-based Qualcomm Inc. scrapped a $44 billion bid for Dutch chipmaker NXP Semiconductors NV after Chinese regulators failed to approve what would have been the largest-ever deal in the chip industry.
Last year, Blackstone Group Inc.'s $3 billion takeover of Soho China Ltd. collapsed a month after the companies said SAMR had formally accepted the deal for review.
Mergers that have won SAMR's approval this year include Taiwan-based GlobalWafers Co.'s takeover of Germany's Siltronic AG and Advanced Micro Devices Inc.'s $35 billion acquisition of Xilinx Inc.
China sales accounted for more than a third of Rogers' 2021 revenue, while nearly half of DuPont's sales came from the broader the Asia-Pacific region, according to data compiled by Bloomberg.
DuPont had pitched the Rogers purchase as a way to tap into the rapid growth of electric vehicles and advanced auto electronics. The deal also would have expanded its position in advanced materials for other key growth markets such as clean energy and 5G mobile-phone service.
Wilmington, Delaware-based DuPont's shares rose about 6% in late trading.
(Updates with previous transactions in fifth paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
