TSEM - Tower Semiconductor drops amid reports on China's review of Intel deal

2023-05-24 10:52:59 ET

Tower Semiconductor ( NASDAQ: TSEM ) fell as much as 6%, though it has now pared its decline to 3.6%, amid reports about China's antitrust review of the deal.

A report earlier on Wednesday appeared to indicate that the $53 deal for Tower Semi ( TSEM ) was at a standstill at China's State Administration for Market Regulation amid some industrial concerns, according to traders, who cited the item that was circulating.

More recently, on Wednesday morning, another report surfaced that indicates the TSEM/INTC deal has divided China's regulators, with many favoring approval with conditions, while others are concerned about Intel ( NASDAQ: INTC ) attempting to advance the Biden administration's agenda.

Earlier this month, Dealreporter said Intel ( INTC ) started preliminary remedy talks with China over the $5.4 billion Tower Semi ( TSEM ) acquisition.  The Chinese review appears to still hinge on the US export control restrictions and possibly ways to tailor a remedy to account for them.

Intel CEO Pat Gelsinger said late last month that the semiconductor giant was making "progress" with Chinese regulators as far as its Tower Semi ( TSEM ) acquisition.

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