Tue, Jun 18, 2013 - Page 14 News List

MediaTek, MStar delay merger until November 1

By Kevin Chen  /  Staff reporter

MediaTek Inc (聯發科) and MStar Semiconductor Inc (晨星半導體), the nation’s two leading IC designers, will postpone a merger for another three months to win approval from Chinese antitrust authorities.

The companies will delay the actual merger date for a third time since January, according to separate filings submitted to the Taiwan Stock Exchange yesterday.

“Considering that the deal still faces regulatory review in China, the companies propose to tentatively change the effective date for the merger to Nov. 1 from Aug. 1,” they said in their filings.

MediaTek, the nation’s biggest handset chip designer, and MStar, the world’s largest supplier of flat-screen TV chips, said in June last year they planned to merge in a bid to enhance competitiveness in a deal estimated to be worth NT$115 billion (US$3.9 billion).

However, in December last year the firms announced they would push back the effective date for the merger from Jan. 1 to May 1. Then, in March, they proposed changing the date for the merger to take effect to Aug. 1 as they awaited approval from foreign governments.

Last week, the Chinese-language Economic Daily News reported that the companies might delay the actual merger date until 2016 to win approval from China, which the two companies rejected as media speculation.

MediaTek shares closed up 0.57 percent at NT$354, while those of MStar fell 0.63 percent to NT$236.5 yesterday.

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