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2mo ago

Allegro Rejects Onsemi's $6.9 Billion Takeover Bid, Citing Offer as 'Inadequate'

The proposed acquisition would have combined two key players in the automotive and industrial semiconductor markets, but Allegro deemed the offer undervalued.

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Overview

  • Onsemi publicly disclosed its $35.10 per share offer for Allegro MicroSystems, valuing the company at $6.9 billion, including debt.
  • Allegro rejected the bid, calling it 'inadequate' after a review, following a prior $34.50 per share offer in September 2024.
  • Shares of Allegro surged nearly 8% after the rejection, while Onsemi's stock fell by 5% on Thursday amid investor reactions.
  • Onsemi's CEO highlighted the potential for a merger to create a diversified leader in automotive, industrial, and AI data center applications.
  • The semiconductor industry continues to face challenges, including weak demand and excess inventory, impacting both companies' recent financial performance.