The Fair Trade Commission (FTC) yesterday gave the green light to DynaPack International Technology Corp’s (順達) buyout of a smaller rival, citing no monopoly concerns.
DynaPack, the second-largest notebook battery pack maker in Taiwan, announced on Aug. 6 it would merge with Celxpert Energy Corp (加百裕工業) through a share swap of one DynaPack share for 1.7 Celxpert shares.
DynaPack will be the surviving entity.
The deal is expected to cost DynaPack NT$5.8 billion (US$181.3 million).
“The market share of the merged entity will still lag behind the No. 1 maker, Simplo Technology Co (新普科技),” the FTC said in a statement.
In terms of international competitiveness, market leaders Sanyo Electric Co of Japan and Simplo would still enjoy a distinct lead over DynaPack, it added.
The FTC also said the merger would boost DynaPack’s economic scale and lower its production costs, allowing it an advantage when negotiating deals and average selling prices with international buyers.
Taiwanese battery pack makers purchase lithium ion batteries before packaging them in battery modules, which puts them at a disadvantage against Japanese and South Korean players, which control both the production of batteries and battery modules, the FTC said.
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