GlobalWafers Co (環球晶圓) yesterday expressed frustration that its planned takeover of Siltronic AG failed to win regulatory approval from the German government, saying it would reassess its future investment strategy.
The US$5 billion deal was derailed by the German government, which did not reach a decision on its review of the transaction after more than a year. The German Ministry for Economic Affairs and Energy blamed a late approval from China for not making a decision in time.
“Until the end of this deadline, not all necessary steps of the investment review could be concluded,” the ministry said in an e-mailed statement. “This applies especially to the review of the approval by the Chinese authorities, which only happened last week.”
Photo: Fang Wei-jie, Taipei Times
The failed transaction raises questions over what comes next for the Taiwanese technology company as well as Siltronic. Shares of the German company, which could again become a target, rose as much as 3.9 percent, valuing it at 3.6 billion euros (US$4.1 billion).
Wacker Chemie AG, Siltronic’s largest shareholder, said it still planned to sell its 30.8 percent stake in the medium term.
The ministry said it would renew its review in the event of another offer.
Initially announced in December 2020, the takeover of Munich-based Siltronic was intended to boost GlobalWafers’ capabilities in 5G and Internet of Things technologies, as well as accelerate its progress toward compound-based semiconductors, the next stage in development beyond silicon.
Both firms acknowledged the deal’s failure with the passing of the agreement’s deadline on Monday.
In GlobalWafers’ statement, the company said it had made “extremely far-reaching remedy proposals and commitments,” and Germany’s approval was the last outstanding condition.
“Based on our efforts to reach a mutually acceptable solution as well as our long and successful history in Europe this outcome is very disappointing,” GlobalWafers chairwoman Doris Hsu (徐秀蘭) said in the statement. “We will analyze the non-decision of the German government and consider its impact on our future investment strategy.”
The business combination agreement includes a clause for GlobalWafers to pay a termination fee of 50 million euros to Siltronic in the event of failure to obtain regulatory approvals within the applicable deadlines, Siltronic said in a statement yesterday.
GlobalWafers struggled to win over Germany at a time when governments around the world are on alert over the risk of losing key technology. At a closed-door meeting on Friday, Hsu failed to resolve the government’s concerns.
The meeting marked the firm’s final opportunity to convince authorities to back the deal. The company had offered the government special voting rights via a “golden share,” as well as ways to undo the purchase or sell back key assets in Siltronic, Bloomberg News reported.
International chip takeovers have faced increasing headwinds as governments have begun to treat semiconductors and supply chains as national security issues.
Nvidia Corp is preparing to abandon its purchase of British chip company Arm Ltd from Softbank Group Corp after drawing backlash from regulators and making little to no progress in winning approval for the US$40 billion deal, while Chinese regulators signed off on Advanced Micro Devices Inc’s purchase of Xilinx Inc, clearing the way for one of the largest deals in the global semiconductor industry.
In its statement, GlobalWafers said it directly holds 13.67 percent of Siltronic shares and has no specific restrictions on future trading.
The company said it would announce alternative plans on Sunday.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old
SEA SEARCH: Nine crew members of a cargo ship had taken to the water after the vessel sunk off the southern coast, with a rescue effort under way, officials said The strongest typhoon to hit Taiwan in eight years yesterday killed three people and flooded parts of the nation’s second-biggest city, while rescuers were searching for nine sailors after their cargo ship sank in the storm. Typhoon Gaemi transformed streets in Kaohsiung into rivers, with some households flooded. Offices and schools were closed for the second consecutive day, with thousands of people evacuated. Three people died and 380 were injured due to strong winds and torrential rainfall brought by Typhoon Gaemi, the Central Emergency Response Center said. The typhoon made landfall in Yilan County’s Nanao Township (南澳) at midnight yesterday and departed Taiwan