Merck KGaA extends buyout offer period for AZ Electronic Materials

Darmstadt-based pharmaceuticls, chemicals, life sciences and performance materials manufacturer Merck KGaA, which is also the world's largest maker of liquid crystals for flat panel displays, has extended the takeover offer period for London-listed specialty chemical materials company AZ Electronic Materials, once a part of Hoechst (now Sanofi).

Merck KGaA has now extended its offer to 28 February. The previous offer period was to expire on 18 February.

AZ Electronic, originally part of German chemicals company Hoechst AG (now Sanofi), was acquired by Swiss chemical maker Clarient in 1997. In 2004, funds affiliated with the Carlyle Group bought the company, and in 2007 Vestar Capital Partners acquired a stake in AZ Electronic.

In October 2010 it was listed on the London Stock Exchange. In 2012 it posted sales of $793.9 million.

Luxembourg-based AZ Electronic specialises in high-quality, high-purity chemical materials, and products used in the manufacture of semiconductor and flat panel displays, and photolithographic printing.

Its products include anti-reflective coatings, photo-resists, high-purity solvents, adhesion promoters etc, and silicon technology products.

The company's clients include leading global integrated circuit (IC) and flat panel manufacturers such as Samsung, Toshiba, Hynix, TSMC, AUO, and Chi-Mei Innolux.

AZ Electronic holds the top two positions in the high-valued added product categories that it serves, according to its  2009 sales data. operates in 10 countries, including China, India, South Korea, Taiwan, Hong Kong, Japan, Singapore, the US, France and Germany, employing over 1,000 people globally at its 8 production facilities and five principal R&D centres spread over Asia, North America and Europe.

Family-controlled Merck KGaA had in December 2013 struck a deal to buy AZ Electronic for $2.6 billion in order to expand its portfolio of specialist chemicals for hi-tech gadgets.

Merck, which also a maker of cancer drugs and lab equipment, had offered 403.5 pence per AZ share, a premium of around 41 per cent over AZ's 3-month volume-weighted average share price.

"The decision to extend the timetable has been made with a view to allowing Chinese Ministry of Commerce to complete its review period in the ordinary course," Frankfurt-based Merck said on Friday after the market close.

Regulators from Germany, Taiwan and the US have already approved the deal.

As on 14 February 2014, Merck KGaA said that it had received shares representing around 53.37 per cent of the existing share capital of AZ Electronic, which comes within its acceptance condition to the offer.