After filing an application with the Fair Trade Commission (FTC) last month, Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) plans to submit its bid to take over Siliconware Precision Industry Co (SPIL, 矽品精密) to China’s competition watchdog this month, a source said yesterday.
Winning approval for the deal from Chinese and Taiwanese authorities would bring the NT$128.7 billion (US$4.06 billion) deal one step closer to completion, the source said, adding that the companies plan to secure shareholder support for the creation of a holding company after receiving regulatory approval.
The companies’ boards in May agreed to form the holding company by the end of next year. ASE Industrial Holding Co Ltd (日月光投資控股) is to own 100 percent stakes in both ASE and SPIL, while both firms would remain separate legal entities.
The companies are confident about getting the nod from the FTC, the source said.
Seeking approval from China’s Ministry of Commerce would be the next step, the source said.
“The deal has an 80 percent chance of winning the approval of Chinese authorities, since China also launches mergers and acquisitions worldwide,” said Eric Teng (鄧志華), general manager of Japan-based Namics Corp, which supplies key materials in the manufacturing of semiconductors.
ASE and SPIL are also in discussion with the US Fair Trade Commission about whether the deal would require its approval, but it is unlikely it would, given that the firms have less than 50 percent combined market share in the US, the source said.
SPIL does not have any manufacturing plants in the US, while ASE operates one, the source said.
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