Siltronic casts doubt on the acquisition of GlobalWafers

(Bloomberg) – Siltronic AG has cast doubt on the planned $5.3 billion takeover by Taiwan’s GlobalWafers Co., saying the German economy ministry’s comments so far were opaque and offered no resolution. clear on how to obtain agreement approval.

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In recent discussions, the companies have not received any information as to whether and under what conditions a takeover clearance could be issued, the German company said Friday evening in a filing following a Bloomberg News article. on the remedies offered by the companies.

In the department’s view, “in this instance, a mitigation agreement is apparently not appropriate to alleviate concerns about the transaction,” Siltronic said in the filing. “The transaction cannot be closed” if the ministry does not issue the clearance decision by Jan. 31, he said.

GlobalWafers and Siltronic have offered a range of remedies related to the settlement, Bloomberg reported. These include giving the German government special voting rights via a ‘preferred share’ as well as ways to cancel the purchase of Munich-based Siltronic or sell key assets back to the country, people say. close to the case who asked not to be identified. because the interviews are private.

“We are now concentrating on Germany. We believe we have addressed all concerns raised in a constructive and comprehensive manner,” GlobalWafers said in a separate statement. “This is an extremely beneficial transaction for Germany and Europe, as it would secure much needed investment and know-how, as well as a very strong and reliable partner for the European semiconductor industry. “, did he declare.

The German Ministry of Economics has been studying the case for more than a year.

“Investment review procedures often involve very complex issues and matters that require careful consideration,” the ministry said in a statement on Friday, adding that the timeline and requirements set out in its foreign trade remain “valid” for review of the agreement.

The proposed sale of Siltronic to the Taiwanese technology giant constitutes a first test for Robert Habeck, the new German Minister of the Economy. The 52-year-old Greens co-leader has spent his first weeks in office drawing up bold plans to switch the country’s sprawling industry to renewables.

The Siltronic deal, however, offers a delicate array of challenges mixing Germany’s interests in maintaining control of future technologies with sensitive geopolitical considerations.

The deal is politically sensitive due to heightened tensions between China and Taiwan. In the past, Germany has tried to avoid antagonizing Chinese authorities over the island, which China’s ruling Communist Party considers part of its territory.

China has also yet to grant regulatory approval for the deal – the only other approval still pending. The country’s State Administration for Market Regulation has indicated it is largely satisfied with the solutions offered by the companies and may make a formal decision shortly, people familiar with the matter told Bloomberg last week.

(Corrects the nature of the department’s investigation in the first paragraph.)

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