Recently, 2 mega-mergers in the semiconductor industry have made new developments, including the completion of semiconductor materials maker Entegris' acquisition of rival CMC Materials and the continued acquisition of software company VMware by global chip design maker Broadcom.

Entegris Successfully Acquires CMC Materials for $5.7 Billion

On July 6th, local time, Entegris, a U.S. semiconductor materials manufacturer, officially announced the completion of its acquisition of its competitor CMC Materials. With the completion of the transaction, CMC Materials also became a wholly owned subsidiary of Entegris.

Based on Entegris' closing price on June 30, the final purchase amount of the transaction is reportedly $5.7 billion (approximately RMB 38.237 billion), including $3.8 billion in cash paid to CMC shareholders, 12.9 million shares of Entegris stock, approximately $900 million in maturing debt and approximately $200 million in acquisition cash.

According to the information, Entegris mainly provides specialty chemicals and advanced material handling solutions for the semiconductor and other high-tech industries, and is a supplier to international majors such as TSMC, Intel, Samsung, Armor Man and SK Hynix, and holds a pivotal position in the global semiconductor industry chain.

CMC Materials, in turn, is a leading global supplier of consumables primarily to semiconductor manufacturers. The company's products play an important role in the production of advanced semiconductor devices, helping customers build smaller, faster and more complex devices.

With the completion of the acquisition of CMC Materials, the new company will create a global leader in electronic materials, said Bertrand Loy, president and chief executive officer of Intergraph.

Broadcom's $61 Billion "M&A of the Century" Continues?

On May 26, Broadcom announced that it will acquire all outstanding shares of VMware in a cash plus stock transaction valued at approximately $61 billion (approximately $409.176 billion). In addition, Broadcom will assume VMware's $8 billion debt burden.

However, the acquisition does not seem to be going too well.

About a month after Broadcom's official announcement, a foreign media report said that the European Union is preparing to launch an antitrust investigation into Broadcom's $61 billion acquisition of VMware because regulators are concerned that the deal could harm competition in the global technology industry. The report also said that people familiar with the matter said Broadcom is already in preliminary communication with EU officials.

According to the latest reports, Broadcom's "semiconductor acquisition of the century" of VMware will go ahead. The report said that no other competitors were involved in the deal during the 40-day bidding period ending July 5 Pacific time, as sources revealed. It should be noted, however, that the deal will eventually need to pass antitrust investigations in the U.S. and the European Union.

Broadcom previously announced that it expects to complete the deal within fiscal year 2023, which means the company has 15 months to reach its goal. It is reported that if the deal is successfully completed, the acquisition will become the largest deal in the semiconductor industry this year.