ON Semiconductor Corp. announced that it is withdrawing from its joint proposal with Microchip Technology Inc. to acquire Atmel Corp..
Keith Jackson, President and Chief Executive Officer of ON Semiconductor, said, "While we believe that Atmel’s Nonvolatile Memory and RF and Automotive businesses would be an attractive strategic acquisition, we have decided to withdraw from the proposal due to the unforeseen deterioration in the semiconductor market since we announced our proposal as well as the unprecedented weakness in the financial markets."
Steve Sanghi, President, Chief Executive Officer and Chairman of Microchip, said, "We are disappointed that difficult semiconductor industry and financial market conditions have resulted in ON Semiconductor withdrawing from our joint proposal to acquire Atmel. As a result of ON Semiconductor’s withdrawal, Microchip must also withdraw its $5 per share offer for Atmel. However, Microchip intends to evaluate its potential alternatives for pursuing a transaction without ON Semiconductor."
