Merck Completes Acquisition of AZ Electronic Materials
Merck announced the completion of its acquisition of AZ Electronic Materials, creating a leading solutions provider in the premium segment of high-tech materials and functional specialty chemicals.
In December 2013, Merck had made a recommended cash offer totalling approximately € 1.9 billion (GBP 1.6 billion) to acquire AZ Electronic Materials. Today’s completion of the transaction follows the satisfaction of all customary conditions, including an acceptance level of 75 percent and antitrust clearances in the United States, Japan, Taiwan, Germany and China. With 81.3 percent under control, Merck will now start the process of delisting AZ and its shares from the London Stock Exchange, with a delisting expected for the beginning of June. Merck still intends to acquire all outstanding shares of AZ and will keep the offer open for acceptances until further notice.
“The successful completion of the AZ acquisition marks a significant milestone in Merck’s ‘Fit for 2018’ transformation and growth program,” said Karl-Ludwig Kley, Chairman of Merck’s Executive Board. “With AZ not only will we be able to further expand our presence in the important Asian growth market, but we will also be able to raise our exposure to exciting global megatrends in electronic materials – from smart phones to the most advanced computing devices.”
Merck will now swiftly start the integration of AZ, which employs around 1,150 people worldwide. The company expects all major steps of the integration to be completed by the end of 2014. To ensure maximum business continuity, Geoff Wild, formerly Chief Executive Officer of AZ Electronic Materials, will remain with the company to support a smooth integration into Merck’s Performance Materials division. During the integration AZ will be operated as a separate business unit under the leadership of Geoff Wild alongside the three existing business units Liquid Crystals, Pigments & Cosmetics and Advanced Technologies until a decision on the final set up has been taken.
Merck, in the coming weeks and months, will conduct a detailed review of the AZ business to determine how best to integrate it into Merck. Combined teams from both organizations will jointly develop the customer and market driven setup appropriate to foster further growth and innovation. Merck has assured AZ’s Board that the existing employment and pension rights of AZ’s employees will be fully safeguarded.
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