Wafer maker Siltronic stays European as buy bid misses deadline
Wafer maker GlobalWafers’ proposed acquisition of Siltronic has been cancelled because it did not receive approval from the German authorities by the January 31 deadline.
GlobalWafers said that all other regulators worldwide had approved the deal which would have created the world’s largest wafer supplier with about one third of the global market.
The company, currently the world’s third largest wafer supplier, also said that it had made numerous proposals and commitments to address the concerns of the German Government and repeatedly offered its willingness to discuss alternative solutions.
“We have not been able to obtain the approval from the German Government before the long stop date,” said Doris Hsu, chairperson and CEO of GlobalWafers, in a statement. “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 still holds 13.67 percent of the shares of Siltronic. There are no specific restrictions regarding potential future trading activities for these shares.
Under the terms of the combination agreement GlobalWafers will have to pay a €50 million termination fee to Siltronic. GlobalWafers said it will announce an alternative use for the money it would have spent on buying Siltonic on Sunday February 6.
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