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DuPont said the termination of the deal was agreed with Rogers
as they have been unable to obtain timely clearance from all the
required regulators. They said in September that they had
received all approvals, except from China.
China's commerce ministry and its State Administration for
Market Regulation, the antitrust regulator that reviews deals,
did not immediately reply to a Reuters' request for comment.
Shares of engineering materials maker Rogers plunged 43% in
extended trading on Tuesday, while those of DuPont rose about
6%.
Rogers is evaluating all options in response to DuPont's notice,
the company said in a statement issued on Wednesday.
The collapse of the deal raises uncertainty over the
restructuring of DuPont, which has been tweaking its portfolio
to focus on high-margin operations and fast-growing industries
such as electric vehicles, 5G and clean energy.
DuPont's all-cash takeover of Rogers, announced last year, would
have been its biggest acquisition since splitting from DowDuPont
in 2019.
It also announced an $11 billion deal earlier this year to sell
most of its mobility and materials business to Celanese Corp and
planned to use the sales proceed to fund the Rogers deal.
The collapsed Rogers deal is the most prominent global
acquisition to be called off in four years due to Chinese
regulatory hurdles.
In 2018, Qualcomm Inc walked away from a $44 billion deal to buy
NXP Semiconductors after failing to secure Chinese regulatory
approval amid China-U.S. trade tensions.
DuPont added it would pay Rogers a termination fee of $162.5
million.
(Reporting by Ruhi Soni in Bengaluru and Miyoung Kim in
Singapore; Editing by Anil D'Silva and Sam Holmes)
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