Why Rogers Stock Crashed Hard Today
Shares of engineered materials maker Rogers (NYSE: ROG) took a massive hit on Wednesday. The stock opened the morning session 43.7% lower and stayed within a few percentage points of that sharp drop all day. On Tuesday evening, materials and chemicals giant DuPont de Nemours (NYSE: DD) canceled its nearly completed buyout of Rogers, citing regulatory clearance issues.
The acquisition originally offered Rogers shareholders a cash payment of $277 per stub. That was a 46% premium to the volume-weighted 30-day average price of Rogers' stock at the time. The deal cleared most of its hurdles in short order, but Chinese regulators never gave it the final thumbs-up. That approval mattered because Rogers has offices and manufacturing facilities in four Chinese cities. Thirty-four percent of the company's 2021 revenue was collected in the Chinese market.
So exactly one year after the original announcement, DuPont officially rescinded this $5.2 billion buyout bid, sending Rogers a termination fee of $162.5 million instead.
Source Fool.com
