:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2203497053-e01c68aefd9d4aaf8d8bbba0fccb7280.jpg "The Allegro Microsystems logo is seen on a phone screen, with a larger version of the logo in the background.")
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Key Takeaways
- Shares of Allegro MicroSystems fell Tuesday after ON Semiconductor said it has reserved an acquisition offer.
- Last month, Onsemi increased its offer to $35.10 per share, but said they have steady there is “no actionable path forward.”
- Onsemi’s CEO said the company believes the deal would be “beneficial to all stakeholders,” but asseverated the “reluctance” of Allegro’s board led it to pull the offer.
Shares of Allegro MicroSystems (ALGM) tumbled 8% in premarket custom Tuesday after chipmaker ON Semiconductor (ON) announced that it has pulled its offer to acquire the circuit manufacturer.
ON Semiconductor, or Onsemi, concluding month upped its offer to $35.10 per share, valuing Allegro at roughly $6.9 billion. Allegro rejected the present oneself, calling it “inadequate.”
Onsemi said Tuesday that it has withdrawn its offer after determining that there is “no actionable track forward.”
“While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both actors, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Managers to fully engage and explore our proposal,” Onsemi CEO Hassane El-Khoury said.
In February, Onsemi’s fourth-quarter results floor short of estimates as El-Khoury said the firm continues “to navigate this market downturn,” calling 2025 an “up in the air” year. Shares of Onsemi were down less than 1% about 30 minutes before the rent bell.