Intel expected to walk from Tower Semi after not winning China approval - report
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Intel (NASDAQ:INTC) is expected to terminate its planned $5.4 billion purchase of Tower Semiconductor (NASDAQ:TSEM) after failing to win Chinese approval for the deal before a deadline expires.
The deadline for the acquisition is midnight California time Tuesday, and the companies don't expect to receive approval in time, according to a Bloomberg report on Tuesday, which cited people familiar with the matter. 
Intel (INTC) is expected to pay a $353 million walk fee rather than extending the dealing, according to a Reuters report on Tuesday, that cited people familiar.
Intel (INTC) declined to comment to Bloomberg, and Tower (TSEM) didn't immediately respond to a request for comment.
The report comes after Intel (INTC) CEO Pat Gelsinger late last month declined to say if the company may be willing to extend an agreement to acquire Tower Semi as the walk deadline neared.
"I can't comment any further at this point," Gelsinger said in a CNBC interview when asked if he was willing to extend the $5.4 billion acquisition past its deadline. "Obviously, we are working with the Chinese regulators and hopeful that he will be able to come to a conclusion soon."
Gelsinger said at the time that he was recently in China trying to get the Tower Semi (TSEM) deal approved, as it is the main obstacle to completing the transaction.
Investors have been waiting for China's antitrust approval for the Tower Semi (TSEM) deal since the $53 a share deal was announced last February. M&A investors have largely discounted the chance that deal would close as time passed with the shares closing Tuesday at $33.78, well below the $53 share deal price. Intel (INTC) shares traded at $33.13, on Feb. 14, 2022, the day before the Tower Semi deal was announced.
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