MKS Instruments purchase of Atotech said to see Chinese concerns from third parties

Mar. 09, 2022 10:28 AM ETAtotech Limited (ATC), MKSIBy: Joshua Fineman, SA News Editor

MKS Instruments headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

  • MKS Instrument's (NASDAQ:MKSI) planned $5B acquisition of Atotech (NYSE:ATC) is said to be seeing some issues with Chinese antitrust approval due to concerns from third parties.
  • The companies are said to have made little progress in addressing issues of Chinese third parties, according to traders, who cited a report that's being circulated around.
  • The report comes after Dealreporter last month said China's Ministry of Industry and Information Technology ("MIIT") recently discussed its concerns about the ATC/MKSI combination with China's main antitrust regulator. The transaction may have to be refiled, Dealreporter said at the time.
  • While the China's State Administration for Market Regulation ("SAMR") initially planned to clear the deal without conditions, the antitrust agency received concerns from third parties in its final check, according to the report circulating on Wednesday. There's now some concern that SAMR won't be able to approve the deal before the March 31 deal termination deadline.
  • MKS Instruments said in December that the ATC deal has received approval, or indication of imminent approval, from 12 out of 13 global antitrust regulatory authorities, with China being the last remaining approval. The company at the time pushed out the close of the deal to Q1 from Q4.
  • MKS Instruments (NASDAQ:MKSI) agreed to buy Atotech (ATC) for $16.20 in cash and 0.0552 of a share of MKS common stock in July

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