Dupont announces: Termination of acquisition!

On November 2nd DuPont, a chemical materials giant, said it was terminating its deal with Rogers after failing to get regulatory approval in time.

According to the statement, DuPont paid Rogers a termination fee of $162.5 million, and Rogers (ROG) shares have plunged about 43% to $129 so far.

The acquisition began in November, when DuPont agreed to pay $277 a share for Rogers, or $5.2 billion. The transaction had been expected to close in the second quarter of 2022, subject to the approval of Rogers shareholders and the receipt of applicable regulatory approvals.

The problem came in the regulatory approval phase, where the deal was held up for months by antitrust reviews. By late September, when DuPont had withdrawn and resubmitted its offer for Rogers to antitrust regulators and planned to close the deal as soon as possible, most speculation was that the deal would be cut rather than terminated.

But according to this announcement, the acquisition is still terminated. Dupont is scheduled to report third-quarter results next Tuesday, when it could shed more light on the reasons for its decision to cancel the deal.

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, a company focused on electronic materials, has a market capitalization of nearly $4 billion. Its main products are high performance and high reliability engineering materials and components, with revenue of approximately $950 million in 2021.

Dupont bought electronic materials company Laird High Performance Materials for $2.3 billion last July. Rogers' electronics and industrial businesses complement each other, and the acquisition would have added to its supply chain strength in electronics.

In addition to the acquisition of an unplanned, dupont also announced recently completed transportation and materials division, most of the business, with $11 billion cash transaction price for the part of the business sold to celanese company, dupont in 2021 net sales of more than $16.7 billion, the stripping of business sales accounted for more than two thirds of dupont.