DuPont backs out of Rogers acquisition, cites clearance hurdles

By Cristal Cody

Tupelo, Miss., Nov. 2 – Rogers Corp. (Baa1/BBB+) said Wednesday it is evaluating “all options to determine the best path forward” after DuPont de Nemours Inc. terminated plans to acquire the company for $5.2 billion.

DuPont (Baa1/BBB+/BBB+) announced after the markets closed on Tuesday that it terminated the agreement to acquire Rogers’ outstanding shares since the “companies have been unable to obtain timely clearance from all the required regulators.”

DuPont is paying a $162.5 million termination fee to Rogers.

Rogers’ shares plunged more than 40% in early trading. The stock finished down 44.2% at $128.01, improved from a 52-week low of $124.50 hit during the session but well off the annual high of $274.51.

The acquisition announced in November 2021 was initially anticipated to close in the second quarter and then later expected to wrap in the third quarter.

High-grade desks had anticipated a potential bond offering from the deal.

On Sept. 30, DuPont said that all regulatory approvals for the transaction between Rogers and DuPont subsidiary Cardinalis Merger Sub, Inc. had been received except from China.

DuPont had reported that it withdrew and refiled the notice of the merger with the State Administration for Market Regulation of China and that discussions were continuing.

DuPont will release its third-quarter results on Nov. 8.

Chandler, Ariz.-based Rogers provides engineered materials, including electronic materials used in applications for automotive safety, mobile devices and industrial equipment.

DuPont is a chemical company based in Wilmington, Del.

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