Rogers Corp. ( NYSE: ROG ) plunged 41% in premarket trading after Dupont ( NYSE: DD ) announced Tuesday that it terminated its $5.2 billion acquisition after the parties failed to obtain timely regulatory clearance. Dupont rose 5.8%.
Dupont ( DD ) agreed to pay Rogers a termination fee of $162.5 million, according to a statement.
“Rogers is currently evaluating all options to determine the best path forward in response to DuPont’s notice," the company said in a statement on Wednesday.
Dupont and Rogers had until Tuesday to decide if either planned to walk away from the deal as China's antitrust review of the deal dragged on for months. Dupont ( DD ) agreed last November to acquire Rogers ( ROG ) for $277 a share in cash.
In late September Dupont ( DD ) said that it had withdrawn and refiled its planned purchase of Rogers ( ROG ) with China's antitrust regulator and planned to close the deal as soon as possible.
BMO analyst John McNulty in September wrote that in possible scenario where the Rogers ( ROG ) deal falls through, DuPont ( DD ) management doesn't plan to make another large acquisition and will be focused "heavily" on share repurchases.
Investors may hear more about why Dupont ( DD ) decided to walk away when the company reports Q3 results next Tuesday.
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Rogers Corp. sinks 41% after Dupont terminates $5.2 billion acquisition