ON Semiconductor Withdraws $6.9 Billion Acquisition Bid for Allegro MicroSystems

ON Semiconductor has officially withdrawn its $35.10 per share acquisition proposal for Allegro MicroSystems, citing a lack of actionable path forward after discussions failed to engage Allegro's board. Following the announcement, ON Semiconductor's shares rose by approximately 2.47%, while Allegro’s shares fell by about 6% in after-hours trading, reflecting market reactions to the failed takeover attempt. ON Semiconductor's CEO, Hassane El-Khoury, expressed a commitment to disciplined capital allocation and indicated that the company would refocus on existing opportunities, including its share repurchase program. The acquisition was valued at $6.9 billion and was expected to create value for both companies' stakeholders, but the reluctance from Allegro's board led to its withdrawal. Despite this setback, ON Semiconductor remains optimistic about growth opportunities in automotive, industrial, and AI data center markets. Allegro's stock closed down at $20.58 after the announcement, starkly contrasting with ON's positive market response.