Taiwan’s GlobalWafers, the world’s third-largest maker of semiconductor wafers, said on Thursday it has signed an agreement to acquire German rival Siltronic AG in a deal worth around $4.5 billion (€3.7bn). 

GlobalWafers said in a statement it will offer €125 a share to Siltronic shareholders, a 10 per cent premium to its closing price on November 27, the last trading day before public disclosure of the planned acquisition.

Chemical group Wacker Chemie AG, Siltronic’s largest shareholder, has agreed to sell all its 30.8 per cent stake to the Taiwanese company, it added.

“We believe that this transaction would be beneficial not only to each GlobalWafers and Siltronic, but also to our customers, shareholders, and other stakeholders,” said GlobalWafers CEO Doris Hsu.

She reiterated that the company could offer “a comprehensive product portfolio” to semiconductor customers worldwide and invest more in capability expansion after the acquisition.

The deal is estimated to be worth $4.5 billion if GlobalWafers buys all of Siltronic’s outstanding shares.

Globalwafers expected the deal, which will require regulatory approval in Germany and Taiwan, to be completed in the second half of 2021.

Siltronic has said its board viewed the offer price “to be attractive and appropriate” and that it could stave off any job losses in Germany until at least 2024.

Siltronic has said its board viewed the offer price ‘to be attractive and appropriate’ and that it could stave off any job losses in Germany until at least 2024

A successful acquisition would help GlobalWafers surpass Japan’s two market leaders, Shin-Etsu Chemical and Sumco, to become world number one by revenue, with a market share of 32 per cent to 35 per cent, according to Richard Hsia, an analyst at Fubon Securities Investment Services Co, quoted by Bloomberg News.

The takeover offer is the latest of a number of semiconductor deals this year that is set to break the record $122 billion in chip acquisitions in 2016, according to Bloomberg.