American Chipmaker Onsemi decided to terminate his proposal to acquire Rivaux Allegro microsystems for $ 35.10 per share.
Announced in March 2025, the proposed agreement estimated Allegro at 6.9 billion dollars, including debt.
The decision comes after Onsemi concluded that there was “no way of exploitable realization” for the acquisition.
In a statement, OnSemi said that he still thought that the merger of the two companies would have united two highly complementary companies, for the benefit of their respective customers and to the immediate supply of Allegro shareholders.
OnSemi has added that it will now focus on existing opportunities to strengthen the value of shareholders.
The company plans to continue to allocate capital to its existing share buy -back program.
The president and chief executive officer of OnSemi, Hassane El-Khoury, said: “Although we continue to believe that a combination with onsemi would be beneficial for all the stakeholders of the two companies, after a meticulous examination, we decided to withdraw our acquisition proposal given the reluctance of the board of directors of Allegro to start fully and explore our proposal.”
“OnSemi is well positioned, both strategically and financially, and we remain strongly focused on the execution of our basic growth initiatives while continuing our capital allowance approach improving value. With advanced market technology, a solid innovation pipeline and a clear strategic roadmap, we continue to see important long -term opportunities in our main automobile, industrial and data centers on AI. ” ».
The last development comes after Onsemi announced a restructuring plan In February 2025, this will result in approximately 2,400 job cuts in its global trade divisions this year.
The restructuring plan, approved by management, includes cost reduction measures to adjust expenditure in response to current commercial conditions while maintaining progress towards long -term financial objectives.
The company has launched the restructuring plan and provides fees of $ 50 million to $ 60 million linked to layoffs.
Most of these costs should be recorded during the current year, the company said.
In June 2024, OnSemi also announced a Investment of up to $ 2 billion To establish a semiconductor manufacturing plant in silicon carbide (sic) in the Czech Republic.
“ONSEMI Abandonment Stock Exchange to acquire Allegro Microsystems” was initially created and published by VerdictA brand belonging to GlobalData.
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