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Taiwan's GlobalWafers In Advanced Stage Negotiations For Acquiring German Rival Siltronic

Taiwan's GlobalWafers In Advanced Stage Negotiations For Acquiring German Rival Siltronic
Negotiations between the German firm Siltronic and the third-largest maker of semiconductor wafers of the world GlobalWafers of Taiwan are at an advanced stage for the acquisition of the German firm by the Taiwanese firm, GlobalWafers confirmed on Monday. The Taiwanese company said that the deal is potentially worth an estimated $4.5 billion.
Statements were issued by both the companies in which they said that they were in "near to final discussions" and the negotiations were at a stage where GlobalWafers was willing to offer €125 per share for one share of the Siltronic.
"A combination of GlobalWafers and Siltronic would create a leading player in the industry with a comprehensive product portfolio that can offer technologically sophisticated products to all semiconductor customers globally," said spokesman William Chen.
In the eventuality of GlobalWafers managing to purchase all of Siltronic's outstanding shares, the overall deal will be worth $4.5 billion, it is estimated.
For the deal to go through, the boards of both companies as well as regulators have to approve it.
The board of Siltronic reviewed the offer price and concluded it "to be attractive and appropriate", the company said, and added that any loss of jobs of employees of the company in Germany because of the acquisition could be staved off up to at least 2024.
"The deal may fail due to anti-trust review, but if a merger is approved, this will be beneficial to GlobalWafers' shareholders," Richard Hsia, an analyst at Fubon Securities Investment Services was quoted in Bloomberg News as saying.
If the acquisition is completed successfully, it will be a significant step for GlobalWafers to the path of becoming larger than the two Japanese market leaders, Shin-Etsu Chemical and Sumco, and will become the number one company in the segment in the world in terms of revenues and will potentially have a combined market share of between 32 per cent and 35 per cent.
The chemical group Wacker Chemie is the owner of Siltronic - the fourth largest wafer material maker of the world.
According to reports, this latest deal is another one in a series of deals in the semiconductor industry so far this year which sets the industry to clock a record and beat the record of $122 billion in deals and acquisitions in the industry that happened in 2016.
The news of the deal pushed shares of GlobalWafers by 9.8 per cent in Taiwan on Monday. On the other hand, there was a 12 per cent rise in the shares of Siltronic in early trading which was the highest gain in the industry since March,

Christopher J. Mitchell

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