American chipmaker Intel terminates deal to acquire Tower Semiconductor

By Ovunc Kutlu

ISTANBUL (AA) - American chipmaker Intel announced on Wednesday it has terminated the deal to acquire Israel-based integrated circuits manufacturer Tower Semiconductor.

The termination is "mutually agreed" with Tower Semiconductor due to "the inability to obtain in a timely manner the regulatory approvals required under the merger agreement, dated Feb. 15, 2022," it said in a statement.

Intel, as a result, will pay a termination fee of $353 million to Tower Semiconductor, it added.

California-based chipmaker announced in February 2022 that the $5.4 billion acquisition would take around 12 months to close.

While the company said in October the deal could be concluded during the first quarter of this year, in March it pushed that date into the second quarter. ​

Intel's stock price declined to $34.10 per share on the Nasdaq at 10:55 a.m. EDT for a 1.9 daily % loss, after closing Tuesday at $34.77 a share.