Merck KGaA seals $6.5 billion Versum takeover deal

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Merck KGaA seals $6.5 billion Versum takeover deal

On Friday, the 12th of February 2019, German drugmaker, Merck KGaA sealed a $6.5 billion acquisition deal of Versum Materials, after the company had agreed to overturn its previous merger deal with rival Entegris. The latest takeover deal of Merck KGaA had been a push to recover at the electronic materials markets for semiconductors and the transaction was expected to boost the shares of Merck’s revenues derived of high-tech chemicals to 27 percent from a previous figure of 19 percent.

Earlier this week, Merck, the German producer of pharmaceuticals alongside biotech production gear, had won the supports of Versum’s board for its $53 per share all stock buyout offer, after getting rejected at an earlier $48 per share buyout offer.

In fact, its rival Entegris had purchased Versum at a $43 per share deal earlier in February this year, and in order to overturn the previously agreed accord, Versum would have to pay an additional contract termination fee of $140 million to Entegris.

Adding that Merch would capitalize on global data processing demand growing by more than 30 percent per year, fueled by trends such as autonomous driving and artificial intelligence, the company said in a statement, “The business combination is expected to significantly strengthen Merck’s Performance Materials business sector, creating a leading electronic materials player focused on the semiconductor and display industries”.