Intel Corporation (NASDAQ: INTC) announced a definitive agreement to repurchase Apollo's (NYSE: APO) 49% equity interest in the joint venture related to Intel's Fab 34 facility in Ireland for $14.2 billion.

Apollo-managed funds initially acquired the 49% stake in 2024 through an $11.2 billion investment, providing Intel with equity-like capital while maintaining balance sheet strength. The original transaction gave Intel financial flexibility to advance strategic priorities including accelerating buildout of Intel 4, Intel 3, and Intel 18A processes.

Intel plans to fund the repurchase through cash on hand and approximately $6.5 billion in new debt issuance. The company expects the transaction to be accretive to ongoing earnings per share while strengthening its credit profile in 2027 and beyond. Intel stated it continues to expect retirement of debt maturities as they come due in 2026 and 2027.

"Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives," said David Zinsner, Intel CFO. "Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy."

Apollo Partner Jamshid Ehsani described the partnership as beginning "at an important stage in the execution of its advanced manufacturing roadmap, where our long-term strategic capital played a meaningful role in accelerating the production of next-generation chip technology."

Fab 34 serves as a high-volume semiconductor fabrication facility for products utilizing Intel 4 and Intel 3 process technologies, including Intel Core Ultra and Intel Xeon 6 processors. The facility remains central to Intel's global manufacturing footprint and product roadmap, according to the company statement.