Versum Materials Rejects Merck's $5.9 Billion Takeover Offer
(Bloomberg) -- Versum Materials Inc. rejected a $5.9 billion takeover offer from Merck KGaA, and said it's committed to completing the previously announced merger with Entegris Inc.
“After careful review and consideration, conducted in consultation with its independent financial and legal advisors, the Versum board concluded that Merck KGaA's proposal is not a superior proposal,” the company said in a statement Friday.
Earlier this week German conglomerate Merck made a $48-a-share offer in an attempt to break up the $3.8 billion planned merger between the two U.S. makers of semiconductor components. Under the terms of the merger agreement with Entegris announced on Jan. 28, Versum shareholders would receive 1.120 shares of Entegris for each existing Versum share.
The combination with Entegris is expected to close in the second half, Versum said. German Merck isn't related to U.S.-based health care company Merck & Co.
Merck believes that its $48 a-share proposal is clearly superior and represents a 51.7 percent premium to the Versum share price before the Entegris deal was announced, the company said in a statement. “We believe our proposal represents a full and fair price for the company,” the statement said.
--With assistance from Nabila Ahmed.
To contact the reporters on this story: Molly Schuetz in New York at mschuetz9@bloomberg.net;Tim Loh in Munich at tloh16@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, John Lauerman
©2019 Bloomberg L.P.
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