The Philippine Competition Commission (PCC) has approved the merger of two American firms engaged in the manufacture of semiconductor chips.
In a decision, the PCC authorized Analog Devices Inc. (ADI) to carry on with its acquisition of shares in Maxim Integrated Products Inc. With the antitrust approval, ADI and Maxim can now push through with the operation of Magneto Corp., their wholly owned subsidiary, which allows Maxim to survive the amalgamation under the ownership of ADI.
Under the transaction, Maxim’s shareholders will be entitled to receive 0.630 of a share in ADI’s common stock for each share of Maxim’s common stock they hold prior to the conclusion of the merger.
As such, the shareholders of ADI are expected to own at least 69 percent of Magneto Corp., while those of Maxim will take up roughly 31 percent of the new entity.
The PCC concluded the merger will not result in the substantial lessening of competition in the semiconductor market, as both camps maintain a business that is international by nature and, therefore, has numerous rivals.
ADI is involved in the business of designing, manufacturing and marketing analog, mixed-signal and digital signal processing technologies used in instrumentation, automation, communications, health care and automotive.
Maxim produces a range of analog, mixed-signal and digital circuits used in automotive, wearables and data center markets.
According to the parties, the merger will lead to business efficiencies for both camps because Maxim’s consumer-centered products will complement ADI’s industrial applications.
Moreover, the PCC found that the parties’ subsidiaries in the Philippines have limited business presence in the local market, where they export all their output to their respective parent entities and affiliates outside the country.
ADI and Maxim are both publicly-traded companies listed on the NASDAQ, with overseas operations including for export fabrication, testing and assembly sites in the Philippines. This includes Analog Devices (Philippines) Inc. and Analog Devices General Trias Inc. for ADI; and Maxim Philippines Holding Corp., Maxim Philippines Operating Corp., Maxim (IP) Enterprise Solutions (Philippine Branch) and Maxim Integrated Products International Sales Ltd. under the Maxim group.
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