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China: Semiconductor merger remains gamble for investors

 |  June 18, 2013

A $3.8 billion buyout of MStar Semiconductor Inc. by MediaTek Inc. has yet to be cleared by Chinese antitrust authorities nearly one year since the two first inked a deal. According to reports, investors who still expect the deal to be cleared by regulators have the most to gain, as MediaTek’s purchase could be at the largest discount of any merger over $500 million currently waiting approval in Asia. MStar currently trades 15 percent below MediaTek’s original bid. The Chinese Ministry of Commerce has delayed a final ruling on the deal for the third time on Monday. Semiconductor market expert Mark Li told reporters that he expects the deal to reach approval.

Full Content: Bloomberg

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