US government against Hyundai deal

US government against Hyundai deal
Tom Foremski
Adaptec has called off its $775 million acquisition of Hyundai’s Symbios subsidiary, saying that the US government was against the deal.
The Federal Trade Commission (FTC) indicated that it would probably not approve the deal because of antitrust concerns. Hyundai was betting on the deal to generate much needed cash to help finance its other chip operations.
“We are very disappointed that we are unable to complete this transaction,” said Grant Saviers, chairman and CEO of Adaptec. “While we are not in agreement with the FTC, we have concluded that it is in the best interests of both companies to terminate the transaction at this time.”
Hyundai will now have to search for another buyer and says it may spin off the company. Adaptec says that the failed merger cost it about $20 million.

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