DuPont withdraws from Rogers acquisition amid Chinese delays

Chandler, Arizona – DuPont has pulled out of the $5.2-billion (€4.5 billion) merger agreement with Rogers Corp., as the two sides failed to finalised the deal before the 1 Nov deadline.

In a statement 2 Nov, Rogers said DuPont terminated the deal and paid a regulatory termination fee of $162.5 million.

According to Rogers, the agreement provided both sides with a right to terminate the deal if the merger had not closed on or before 1 Nov.

The completion, said the Arizona-based group, was delayed as the State Administration for Market Regulation of China (SAMR) did not provide its approval before the beginning of November.

“Rogers is currently evaluating all options to determine the best path forward in response to DuPont’s notice,” said the group following DuPont’s decision.

“While we are disappointed with the outcome of this process, the strength of Rogers as a standalone business is undeniable,” said Peter Wallace, Rogers’ board chair.

The group, Wallace went on to say, will aim to ‘expand its leadership position’ and capitalise on attractive opportunities.

Also commenting, president and CEO Bruce Hoechner said Rogers had continued to perform well and grow revenue during last year's challenging macroeconomic environment.

“We remain confident that we can double our annual revenues over the next five years and return profitability back to historic levels as market conditions improve,” he concluded.

In its brief statement, issued 1 Nov, DuPont announced the termination of the agreement to acquire Rogers, as "the companies have been unable to obtain timely clearance from all the required regulators."