Fairchild Receives $2.46 Billion Acquisition Offer for Anson US Acquisition Crisis

On December 8th, US chip maker Fairchild Semiconductor said it has received a new offer of US$2.46 billion and offered to acquire Fairchild at $21.7 per share in cash, which is more than what was provided by ON Semiconductor. The price premium of $20 is 11.1%. It is understood that the new acquisition offer comes from China's Hua Caiptal and China Resources Microelectronics.

Anson acquired the acquisition of Fairchild Semiconductor

On November 18, ON Semiconductor announced that it would acquire Fairchild Semiconductor for $2.4 billion, and Fairchild had decided to reach an agreement with it, but the company could still evaluate the proactive offer it received. On Tuesday, Fairchild received the new offer, and the company said in a statement on Tuesday that they will evaluate the new offer, but the company's board of directors still advises shareholders to accept the ON Semiconductor agreement. There is still suspense in whether or not Fairchild is spending money in China.

If Anson successfully acquires Fairchild, the transaction will create a leader in semiconductor power devices. The two companies will have a total of $5 billion in revenue, and the business will span multiple markets. The new company's business focus will be automotive electronics and industry. Electronics and smartphone terminals. The product lines of the two companies are highly complementary and will cover the high-voltage, medium-voltage and low-voltage markets of power semiconductor devices. The acquisition of Fairchild Semiconductor will enable Axon to strengthen its strategic direction in the industrial electronics, automotive electronics and smartphone terminal markets.

As a legend of Silicon Valley, Fairchild Semiconductor is still an important manufacturer of power semiconductor devices, although it has not had the magical colors of the past. Its products are widely used in automotive electronics and industry, and it is also very attractive to Chinese buyers. The Chinese government has always sought to create a national leading company in the semiconductor industry, which is of great strategic significance to China. Because domestic mobile phones, personal computers and electronic products consume a lot, they hope that a domestic supplier can take a bigger dominant position in this market. Fairchild's chip business helps monitor the power usage of computers and other devices. If the company is acquired, it will further strengthen the semiconductor business of China Resources Group and contribute to the development of the domestic semiconductor industry.

But this acquisition is not easy. A major obstacle for Chinese buyers is the rigorous review of the US Foreign Investment Committee, which is responsible for reviewing foreign buyers' acquisitions of US companies. The department seems to be unfriendly about Chinese buyers bidding for US technology companies, but China Resources Group may argue that Fairchild's business will not have an important impact on US national security. In the end, it is still unknown whether the acquisition can be established, but it has already attracted the attention of the industry.

This year the global chip market has been frequently integrated. In March, Dutch chipmaker NXP Semiconductor announced the acquisition of Freescale for $11.8 billion. At the end of May, Anwara announced the acquisition of Broadcom with approximately $37 billion in cash and stock. On June 1, Intel announced the acquisition of programmable logic chip giant Altera for approximately $16.7 billion. Now, a new M&A case will soon be released.

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