As part of the agreement, Intel will have to pay a $353 million termination fee.
Intel and Tower Semiconductor have mutually agreed to abandon plans for the former to acquire the Israeli chip manufacturer at $53 per share in cash, which would have valued the now-nixed deal at $5.4 billion. However, it’s not as simple as just parting ways—as part of the merger agreement that was signed in February 2022, Intel will pay a $353 termination fee to Tower.At the time the deal was announced, Intel estimated it would take around 12 months to finalize, pending regulatory approvals and customary closing conditions, including the approval of Tower’s shareholders. So how did the deal fall apart? In a press release, Intel simply states that it nixed the deal a year and half later «due to the inability to obtain in a timely manner the regulatory approvals» that were needed to see this to fruition.
