AMSC (Nasdaq: AMSC), formerly known as American Superconductor, said it has terminated a 190 million euro ($266 million) deal to purchase The Switch Engineering Oy, a power technologies firm based in Finland. AMSC announced the deal in March.
AMSC said the decision to end the acquisition is based on “adverse” market conditions for the necessary financing.
The Switch will retain a 14.2 million euro ($20.6 million) advance payment from AMSC as a breakup fee; AMSC said it will record the amount as an expense for its fiscal second quarter ended Sept. 30.
The companies will continue to work together on drive-train solutions for wind turbines.
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