DuPont pulls out of Rogers acquisition due to Chinese regulatory delays

WILMINGTON, Del.—DuPont Co. has pulled out of its planned all-cash $5.2 billion acquisition of Rogers Corp., a day shy of a year after the deal was announced, due to an inability to obtain "timely" clearance from regulators in China.

Wilmington-based DuPont will pay Rogers, based in Chandler, Ariz., a termination fee of $162.5 million. Rogers shares dropped by 43 percent on the news, while DuPont's rose by 6 percent.

The companies had said at the end of September that they had received required regulatory clearance in every region except China.

The deal was part of DuPont's strategy to increase its business in fast-growing sectors such as electric vehicles. Rogers' portfolio of engineering materials includes industrial and medical polyurethanes sold under the Poron brand name, R/bak open cell urethane cushion mounting materials, and XRD impact protection materials.

DuPont announced the divestment of much of its Mobility & Materials business to Celanese in February. Cash from this $11 billion deal was destined to pay for Rogers. This divestment closed on the same day the Rogers purchase was abandoned.

Celanese had to divest its global thermoplastic copolyester business in order to get European approval for that deal. The buyer is Taro Plast SpA, an Italian compouder of engineering plastics and thermoplastic elastomers.

Meanwhile, Rogers officials said they are currently evaluating all options to determine the best path forward.

"Rogers remains an exceptional company, and the team continues to execute on our successful growth strategy," the company said. "Our strong competitive position innovating across fast-growing markets, including [EV and hybrid electric vehicles], is underscored by continuing design wins, broad customer enthusiasm and a robust pipeline of opportunities."