Merck to acquire AZ Electronic Materials for Euro 1.9 billion

To further expand its materials and specialty chemicals business, German chemical major Merck has signed an agreement to acquire AZ Electronic Materials (AZ), a globally leading premium supplier of high-tech materials for the electronics industry. The deal, which values AZ at around GBP 1.6 billion (around Euro 1.9 billion), represents a premium of around 41% over the 3-month volume-weighted average share price of AZ.
 
The successful completion of the transaction is among others conditional upon antitrust clearance as well as a minimum acceptance level of 95% of the share capital.
 
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Karl-Ludwig Kley, Chairman of the Executive Board of Merck, said, “With this strategic move we are strengthening the portfolio of Merck by adding a premium business to our existing business of high-margin specialty chemicals. The combination will enable Merck to access additional growth areas in the electronics industry to benefit even better from the increasing demand for electronic devices beyond displays. The proposed offer also marks another milestone in our transformation journey toward a highly specialised technology company offering tailor-made solutions to patients and customers.”
 
John Whybrow, Chairman, AZ commented, “For many years AZ has been recognised as one of the foremost leaders in high purity innovative materials for the high technology electronics market. As materials become increasingly important in the markets we serve, strong R&D capabilities and a broad base are needed to secure economies of scale and entry into new markets. The current strategic opportunity for AZ to combine with Merck is therefore compelling. AZ has strong market positions along with a focused product development capability: by combining with Merck, these two attributes will reinforce long term growth opportunities.”