Siltronic AG has cast doubt on a planned US$5.3 billion takeover by GlobalWafers Co (環球晶圓), saying comments from Germany’s Ministry of Economic Affairs and Climate Action have so far been opaque. and offered no clear solution to allay antitrust concerns.

In recent discussions, the companies have not received any information as to whether and under what conditions a takeover authorization could be issued, the German company said in a regulatory filing on Friday following a report on the proposed solutions. by companies.

In the department’s view “in this instance, a mitigation agreement is apparently not appropriate to alleviate concerns about the transaction,” Siltronic said in the filing. “The transaction cannot be closed” if the ministry does not issue the clearance decision by January 31.

Photo: Grace Hung, Taipei Times

GlobalWafers and Siltronic reported offering a range of remedies to resolve antitrust issues related to the deal.

These include giving the German government special voting rights via a ‘preferred share’ as well as ways to cancel the purchase of Munich-based Siltronic or sell key assets back to the country, people close to them said. of the file who asked not to be identified because the interviews are private.

“We are now concentrating on Germany. We believe we have addressed all concerns raised in a constructive and comprehensive manner,” GlobalWafers said in a statement. “This is an extremely beneficial transaction for Germany and Europe, as it would secure much needed investment and know-how, as well as a very strong and reliable partner for the European semiconductor industry. .”

The ministry has been studying the case for more than a year.

“Investment review procedures often involve very complex issues and matters that require careful consideration,” the ministry said in a statement earlier Friday, adding that the timeline and requirements set out in its foreign trade remain “valid. ” for the review of the agreement.

The proposed sale of Siltronic to the Hsinchu City-based tech giant is a first test for Germany’s Economic Affairs and Climate Action Minister Robert Habeck.

The Green Party co-leader has spent his first weeks in office crafting bold plans to transition the country to renewable energy.

The Siltronic deal offers a delicate array of challenges that weave together Germany’s interests in maintaining control of future technologies with sensitive geopolitical considerations.

The deal is politically sensitive due to heightened tensions across the strait.

In the past, Germany has tried to avoid antagonizing the Chinese authorities over Taiwan.

China has yet to grant regulatory approval for the deal – the only other approval still pending.

China’s State Administration for Market Regulation is broadly satisfied with the companies’ proposed antitrust measures and could make a decision soon, people familiar with the matter said earlier this month.

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