Key Takeaways
- Shares of Allegro MicroSystems fell Tuesday after ON Semiconductor said it has withdrawn an acquisition offer.
- Last month, Onsemi increased its offer to $35.10 per share, but said they have determined there is “no actionable path forward.”
- Onsemi’s CEO said the company believes the deal would be “beneficial to all stakeholders,” but said the “reluctance” of Allegro’s board led it to pull the offer.
Shares of Allegro MicroSystems (ALGM) tumbled 8% in premarket trading Tuesday after chipmaker ON Semiconductor (ON) announced that it has pulled its offer to acquire the circuit manufacturer.
ON Semiconductor, or Onsemi, last month upped its offer to $35.10 per share, valuing Allegro at roughly $6.9 billion. Allegro rejected the offer, calling it “inadequate.”
Onsemi said Tuesday that it has withdrawn its offer after determining that there is “no actionable path forward.”
“While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both companies, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Directors to fully engage and explore our proposal,” Onsemi CEO Hassane El-Khoury said.
In February, Onsemi’s fourth-quarter results fell short of estimates as El-Khoury said the firm continues “to navigate this market downturn,” calling 2025 an “uncertain” year. Shares of Onsemi were down less than 1% about 30 minutes before the opening bell.
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