Intel CFO: Expecting to close Altera deal in the next few weeks - Citi Global TMT Conference

Intel CFO: Expecting to close Altera deal in the next few weeks - Citi Global TMT Conference

Intel's CFO, David Zinsner, recently disclosed at the Citi Global TMT Conference that the company anticipates closing the acquisition of Altera Infrastructure's FPSO business in the coming weeks. This strategic move is part of Intel's broader efforts to strengthen its position in the semiconductor industry and bolster its offshore energy infrastructure capabilities.

The acquisition, which includes several floating production, storage, and offloading (FPSO) vessels and one FSO, is expected to bring significant long-term contracts and strong market fundamentals to Intel's portfolio [2]. Carlyle International Energy Partners II, a private equity fund, will provide the equity for the acquisition, leveraging its experience in successful carve-outs of energy assets [2].

The deal, which is subject to customary closing conditions and regulatory approvals, aims to optimize the performance of the assets and execute growth initiatives to scale the business [2]. Intel's involvement in the offshore energy sector is seen as a strategic diversification, especially given the company's recent challenges in its core semiconductor business.

Intel has faced intense competition from TSMC and Samsung, as well as internal pressures to sell its manufacturing arm. The government's involvement in Intel's semiconductor business, including a 10% stake in the company, has sparked debate among investors and financial professionals. Critics argue that this move could limit Intel's strategic flexibility and potentially turn the company into a loss-making entity [1].

The acquisition of Altera Infrastructure's FPSO business is part of Intel's broader strategy to secure technological leadership and national security. However, the company's ability to make independent business decisions could be significantly impacted by the government's equity stake.

In conclusion, Intel's CFO's announcement at the Citi Global TMT Conference underscores the company's commitment to strategic diversification and growth. The expected closure of the Altera deal is a significant step forward in Intel's efforts to strengthen its position in both the semiconductor and offshore energy sectors. The ongoing negotiations and potential impacts on Intel's business decisions will be closely watched by investors and financial professionals.

References:
[1] https://www.inkl.com/news/intel-confirms-it-has-already-received-5-7-billion-from-us-government-cfo-claims-the-deal-was-to-halt-the-sale-of-its-chip-fabs
[2] https://www.bairdmaritime.com/offshore/vessels-rigs/fposfpsos/carlyle-acquires-altera-infrastructures-fpso-business