GlobalWafers to acquire Siltronic for $4.5 billion

According to foreign media reports, silicon wafer giant GlobalWafers announced that it is in the final stage of negotiations with German silicon wafer giant Siltronic AG to reach a business combination agreement (BCA). GlobalWafers plans to publicly acquire Siltronic's outstanding shares at 125 euros per share, equivalent to a premium of 48%. The two parties expect to sign the BCA in the second week of December after obtaining approval from Siltronic's Supervisory Board and GlobalWafers' Board of Directors.

The deal for GlobalWafers to acquire Siltronic is still under negotiation and a final agreement has not yet been reached, but the negotiations have entered the final stage. Siltronic has announced that they are negotiating the acquisition with GlobalWafers, and GlobalWafers has also confirmed the news on its official website.

According to foreign media reports, GlobalWafers' negotiations to acquire Siltronic began several months ago. GlobalWafers offered a purchase price of 125 euros per share, and the acquisition of all outstanding shares of Siltronic would cost 3.75 billion euros, equivalent to about 4.5 billion US dollars.

At the close of last Friday, Siltronic's share price was 113.55 euros. GlobalWafers' acquisition price of 125 euros per share was 11.45 euros higher than the closing price last Friday, a premium of 10%.

Foreign media reported that since the news of GlobalWafers' negotiation to acquire Siltronic had already been reported before, Siltronic's stock price also rose significantly after the news that the two companies had started negotiations, and has risen by nearly 40% this month.

Foreign media reported that Siltronic's executive board believes that the acquisition price offered by GlobalWafers is attractive and reasonable. After obtaining approval from Siltronic's Supervisory Board, the agreement for GlobalWafers to acquire Siltronic is expected to be signed in the second week of December.

According to foreign media reports and news released by GlobalWafers, GlobalWafers and Siltronic's major shareholder Wacker Chemie are close to reaching an agreement to acquire shares. Wacker Chemie holds approximately 30.8% of Siltronic's shares. Wacker Chemie is a family business located in Munich. The board of directors of this company believes that GlobalWafers' offer is appropriate.

If GlobalWafers' agreement to acquire Siltronic is reached, it will be the fourth large-scale acquisition deal in the semiconductor field this year. The previous three were Nvidia's $40 billion acquisition of Arm, AMD's $35 billion acquisition of Xilinx, and SK Hynix's $9 billion acquisition of Intel's flash memory business.

Siltronic is the world's fourth largest silicon wafer manufacturer, with a market share of about 7%, while GlobalWafers is the world's third largest manufacturer, with a market share of 18%. After the public acquisition is completed, GlobalWafers' market share in the global silicon wafer manufacturer market is expected to jump to about 25%, approaching Japan's SUMCO's 28%.

GlobalWafers Chairman Hsu Xiu-lan pointed out that both parties believe that the combined business experience will have great synergies and will be able to complement each other to effectively invest and expand production capacity.

Xu Xiulan said that if the entire transaction is completed, it will create the greatest common benefits for GlobalWafers, Siltronic and Wacker Chemie and their respective shareholders, employees, customers and other stakeholders.