Global PMX Co (智伸科), which makes auto parts and medical components, yesterday said it plans to acquire 100 percent of local peer Sixxon Precision Machinery Co Ltd (旭申) early next year to improve its product portfolio and avoid tariff risks.
Global PMX said its board of directors had approved a plan to issue 24 million new shares for the acquisition, in which the company will exchange one of its shares for 1.25 Sixxon Precision shares.
Sixxon Precision, which specializes in making transmission parts, such as gearboxes and torque converters, mainly supplies auto parts for Tesla Inc, Fiat Chrysler Automobiles NV, Hilite International Inc and ZF Transmissions Shanghai Co Ltd.
With Hilite International and ZF Transmissions providing auto parts for Porsche, Mercedes-Benz and BMW vehicles, Global PMX has a chance to enter those supply chains by buying Sixxon Precision.
“The acquisition will help us expand into transmission parts for hybrid and electric vehicles, as the products of the two companies are complementary,” Global PMX spokesperson Maggie Lin (林慈青) told a media gathering in Taipei.
The company also plans to integrate research resources and develop new auto parts to gain market share, Lin said.
The transaction amount is estimated to be NT$3.6 billion (US$115.97 million), based on Global PMX’s closing share price of NT$150 on Friday last week.
The company’s paid-in capital is expected to increase from NT$819 million to NT$1.06 billion after the acquisition, it said.
The share swap is scheduled for Jan. 31, Global PMX said.
With the deal, Global PMX would be able to move production back home from China if the US-China trade dispute worsens, Lin said, citing Sixxon Precision’s operations at the Youth Industrial Park Service Center (幼獅工業區) in Taoyuan.
US tariffs on Chinese goods have reduced sales this year by about 3 percent, Global PMX said.
Global PMX reported net income of NT$305.56 million in the first half of the year, while Sixxon Precision reported NT$191.34 million.
First-half revenue totaled NT$2.36 billion for Global PMX and NT$1.43 billion for Sixxon Precision.
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS