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Last Trade - 17/09/20

Large Cap
Market Cap £7.08bn
Enterprise Value £11.42bn
Revenue £11.61bn
Position in Universe 811th / 6371

BREAKINGVIEWS-China's chip landgrab sparks $8 bln of hasty M&A

Tue 15th December, 2015 3:31am
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Robyn Mak HONG KONG, Dec 15 (Reuters Breakingviews) - China wants to assemble a domestic semiconductor giant via foreign takeovers. So rattled rivals are rushing to secure assets, especially in Taiwan. Micron's $4.1 bln buyout of a JV partner makes sense. ASE's gatecrashing of an agreed tie-up with the Chinese looks riskier. Full view will be published shortly. CONTEXT NEWS - Taiwanese chipmaker Advanced Semiconductor Engineering (ASE) on Dec. 14 offered to buy the rest of rival Siliconware Precision Industries (SPIL). ASE, which already owns 25 percent of SPIL, offered NT$55 ($1.67) per common share for the rest - a 21 percent premium over the last closing price. The all-cash deal is valued at NT$128.6 billion. - The unsolicited offer comes after Chinese state-backed conglomerate Tsinghua Unigroup said on Dec. 11 it would buy a 25 percent stake in SPIL for the same NT$55 per share. ASE's offer is conditional on SPIL cancelling that earlier deal, and has not been approved by SPIL's board. - Separately, U.S. memory chipmaker Micron Technology agreed to buy the remaining 67 percent of shares it does not own in Taiwanese partner Inotera Memories on Dec. 14. The deal is worth $4.1 billion on an equity basis, or $3.2 billion including the target's net cash. - ASE shares rose 3.8 percent to NT$34.7 by mid morning on Dec. 15 in Taipei, while SPIL's shares rose by the 10 percent daily limit to NT$50.10. Inotera shares also rose by the maximum 10 percent, to NT$25.30. - ASE announcement: - Micron announcement: - Reuters: Taiwan's ASE offers to buy Siliconware Precision to deflect China rival bid*:nL3N1433LK - Reuters: Micron Technology agrees to buy remaining interest in Inotera Memories*:nWNAB09EXD - Reuters: China's Tsinghua Unigroup to invest $47 bln to build chip empire*:nL3N13B29S (The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) - For previous columns by the author, Reuters customers can click on MAK/ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (On Twitter Editing by Quentin Webb and Katrina Hamlin) ((;)(Reuters Messaging: Keywords: TAIWAN SEMICONDUCTORS/M&A BREAKINGVIEWS
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