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Key Takeaways
- Allegro MicroSystems’ shares fell Tuesday after ON Semiconductor announced it had withdrawn an offer to acquire the company.
- 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.
Allegro MicroSystems’ (ALGM) shares fell 8% in Tuesday’s premarket trading after ON Semiconductor announced that it had withdrawn its offer to buy the circuit manufacturer.
ON Semiconductor (also known as Onsemi) increased its offer last month to $35.10 a share, valuing Allegro’s stock at approximately $6.9 billion. Allegro rejected the proposal, 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Onsemi said Tuesday that it has withdrawn its offer after determining that there is "no actionable path forward."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.
El-Khoury stated that Onsemi continues “to navigate the market downturn”, calling 2025 a “uncertain” date. In February, Onsemi’s fourth-quarter earnings fell short of expectations. Shares of Onsemi fell less than 1% 30 minutes prior to the opening bell.
