Intel's $5.4-B Buyout Of Israeli Chipmaker Crashes

A $5.4 billion acquisition of an Israeli chip manufacturer by Intel has been called off after China failed to sign off on the deal amid rising tensions with the US, the Associated Press (AP) reported.

Photo Insert: China's State Administration for Market Regulation appears to have dragged its feet on approving mergers involving American companies, such as the Intel-Tower deal.

It was a mutual decision by Intel and Tower Semiconductor, the companies said Wednesday. Intel added that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”

The deal required approval from a number of regulators worldwide, including those in China.

Chinese regulators failed to approve the deal by a deadline Wednesday even as Intel CEO Patrick Gelsinger flew to China last month in a bid to win them over.

The scuttled deal between the two companies comes amid increasing US-China tensions, particularly as the US has tightened export controls and imposed restrictions aimed at crippling China’s ability to purchase and manufacture advanced chips.

China’s antitrust regulator, the State Administration for Market Regulation, appears to have dragged its feet on approving mergers involving American companies, such as the Intel-Tower deal.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic