Not approved by Germany!Global Wafer failed to acquire Sun Chuang: it had to pay 360 million yuan termination fee

2022-05-11 0 By

Global Wafer, a leading semiconductor wafer maker, said yesterday it had failed to win Approval from the German government for its acquisition of Siltronic by the January 31 deal deadline.In addition, as a result of the failure of the acquisition, Global Wafer will pay A termination fee of 50 million euros to Seichuang.Global Wafer emphasizes that the company’s financial position is sound and therefore the impact of the termination fee on global wafer is limited.According to the news, the acquisition of World Wafer has been approved by the anti-monopoly authorities in the United States, Singapore, Austria, South Korea, Taiwan and the Committee on Foreign Investment in the United States, as well as conditional approval from the Chinese government (the zone melt wafer business of World Wafer needs to be stripped).This also makes the Approval of the German government the final condition for the acquisition.In the previous review process, Global Wafer has proposed extremely long-term compensation measures and commitments to the German government, and has expressed willingness to discuss alternative solutions with the German government on many occasions.The chairman and CEO of ring spherulite xiu-lan xu said the ring chip at the trade deadline is still unable to obtain the approval of the German government, even though ring chip efforts to reach a mutually agreed solution, all can with a long and successful in Europe of the past, feel very sorry for this result, but the future will continue to work closely with European clients,Global Wafer will analyze the German government’s decision not to conclude the acquisition, and consider the impact of this decision on its future investment strategy.Global Wafer notes that as of January 31, the closing date, the German government conducted a 14-month review period and on December 7, 2021,As the German Federal Ministry for Economic Affairs and Climate Action (foreign investment jurisdiction) has extended the review period beyond the deadline imposed by BaFin to obtain the approval of all competent authorities, the globalchip public acquisition and the related contracts have not been completed and will be void.Global wafer said that 13.67% of the shares in The market had been acquired by itself can be disposed of freely, without the limitation of the holding period, and 56.60% of the shares in the public acquisition period still belongs to the original shareholders, is expected to be converted into general tradable ordinary shares on February 8, global wafer has no obligation to perform the contract.Ring spherulite circular stressed that fails to purchase the gen will not influence the order of the ring chip operating activities, because Europe is still the important market, ring chip for European customer and employee commitment to remain unchanged, but the ring between the chip and the world and the business merger agreement, if failed to get the required approval by the competent authority,Global Wafer is due to pay A termination fee of 50 million euros to Setron, which will have a limited impact on Global wafer due to its sound financial situation and will announce the alternative use of the original acquisition funds on February 6.For the global wafer acquisition of Germany’s Sun Chuang blocked, industry analysts believe that under the current global core shortage background, European countries are paying more attention to the security of semiconductor supply chain.European Union officials also announced that they will publish a proposed EU version of the CHIP law in early February, which is expected to introduce tens of billions of euros in subsidies to support The European chip industry.As the key raw material of semiconductor chip, semiconductor silicon wafer has naturally become a key link for eu countries to strengthen the security of semiconductor supply chain.According to the data, Global wafer is the third largest semiconductor wafer manufacturer in the world, and Germany’s Schichuang ranks the fourth. If Global wafer can successfully acquire Schichuang, its market share will surpass Japan’s SUMCO, which ranks the second at the present stage, and become the world’s second largest semiconductor wafer manufacturer only after Japan’s Shin-etsu.This will further strengthen Taiwan’s influence in the global semiconductor materials sector.This is obviously not conducive to the EU’s goal of strengthening its own semiconductor supply chain security and reducing its dependence on Asian semiconductor supply chain.