Germany’s economy ministry said it could not complete its review of a planned sale of chip supplier Siltronic to Taiwanese rival GlobalWafers before a deadline for the approval set by the prospective buyer expired on Monday, scuppering the 4.35 billion euro ($4.89 billion) transaction.
“It was not possible to complete all the necessary review steps as part of the investment review – this applies in particular to the review of the antitrust approval by the Chinese authorities, which was only granted last week,” a spokesperson for the ministry said.
On Jan. 21, China’s market regulator said it would give conditional approval for the acquisition.
The German ministry said if GlobalWafers makes a new acquisition attempt, an investment review would be carried out again.
GlobalWafers Chairman and Chief Executive Officer Doris Hsu called the outcome “very disappointing” and said the company will “analyze the non-decision of the German Government and consider its impact on our future investment strategy.”
“Europe remains an important market for GlobalWafers and it remains committed to the customers and employees in the region,” the company said in a statement, adding that it will have to pay a termination fee of 50 million euros since regulatory approvals were not obtained.
GlobalWafers secured a majority stake in Siltronic last year and initially hoped to have the transaction, which aimed to create the world’s second-largest maker of 300-millimetre wafers, wrapped up in late 2021.
Hsu told newspaper Handelsblatt last week that the company would probably invest in America if the deal fails. Euro News Source