GlobalWafers Co (環球晶圓) failed to reach a breakthrough in a last-ditch bid to salvage its planned takeover of Siltronic AG, likely spelling the collapse of the US$5 billion deal.
The Taiwanese technology company did not resolve the government’s concerns during a private meeting between GlobalWafers chairwoman Doris Hsu (徐秀蘭) and German Federal Ministry for Economic Affairs and Climate Action State Secretary Udo Philipp, people familiar with the matter said.
Siltronic shares tumbled as much as 4.7 percent on the news on Friday, extending the stock’s decline for the year to more than 20 percent.
While the ministry continues to examine the deal,
Siltronic AG cast doubt on a planned US$5.3 billion takeover by GlobalWafers Co (環球晶圓), saying that the German Ministry of Economic Affairs and Climate Action’s feedback so far was opaque and offered no clear resolution to allay antitrust concerns.
During recent discussions, the companies did not receive any information as to whether and under which conditions a clearance for the takeover might be issued, the German company said in a regulatory filing on Friday following a news report on remedies the companies have offered.
In the ministry’s view “in this case, a mitigation agreement is apparently not suitable to mitigate concerns
GlobalWafers Co acquires 70 percent Siltronic AG stake
Staff writer, with CNA
GlobalWafers Co (環球晶圓), the world’s No. 3 supplier of silicon wafers, yesterday said that it has acquired a 70.27 percent stake in German competitor Siltronic AG, in a public bid that ended four days ago.
With the acquisition of a controlling stake in Siltronic, the Taiwanese company is to become the world’s second-largest silicon wafer supplier.
Last month, GlobalWafers secured more than 50 percent of Siltronic shares with an offer of 4.35 billion euros (US$5.2 billion) in a public tender that was due to end on Feb. 10, but the acceptance period was extended until Monday.