burst! DuPont announces termination of takeover deal with Rogers

Latest News: On November 2, chemical materials giant DuPont announced that it had terminated its acquisition of Rogers due to failure to obtain timely regulatory approvals.

DuPont paid Rogers $162.5 million in termination fees, according to the statement.

The acquisition began in November when DuPont agreed to buy Rogers for $277 per share, for a total of $5.2 billion. The deal was expected to close in 2022
Completion in the second quarter of 2018, subject to approval by Rogers shareholders and obtaining applicable regulatory approvals.

The problem was in the regulatory approval phase, a deal that dragged on for months because of antitrust scrutiny. In late September, DuPont withdrew and refiled its Rogers deal with antitrust regulators and planned to close the deal as soon as possible, at a time when most speculated that the deal might be a price cut rather than a termination.

However, according to the news released this time, the acquisition was terminated. DuPont is scheduled to report third-quarter results next Tuesday, when it may reveal more about the reasons for the decision to cancel the acquisition.

As a global chemical giant, DuPont is transforming into high-growth and high-value-added electronics and new energy industries such as electric vehicles, ADAS, 5G communications and clean energy in recent years.

Rogers is an electronic materials-focused company with a market cap of nearly $4 billion. The main products are high-performance and high-reliability engineering materials and components, with revenue of approximately 9.5% in 2021
One hundred million U.S. dollars.

In July last year, DuPont acquired electronic materials company Laird Performance Materials for $2.3 billion. Rogers’ electronics and industrial businesses complement it, and the acquisition of Rogers could have further improved its supply chain strength in the electronics sector.

In addition to the acquisition plan, DuPont also announced recently that it has completed the divestiture of most of the business under the Transportation and Materials Division.
The sale to Celanese in a deal valued at $100 million in cash, and DuPont’s net sales of more than $16.7 billion in 2021, the divested businesses account for more than two-thirds of DuPont’s sales.