German chipmaker Elmos Semiconductor stated that the deal, which includes the sale of its silicon wafer factory to the Swedish subsidiary of China's Sai MicroElectronics, is likely to be blocked by the German Ministry of Economy. The ministry had previously given signals that it would approve the deal.
According to the statement made by Elmos, the ministry informed the parties of the agreement that the sale of the Dortmund factory to Silex Microsystems, which produces semiconductor chips for the automotive industry, will most likely be blocked at the cabinet meeting on Wednesday. It was announced that the parties will examine the evaluation made by the cabinet and decide on their next moves. The deal is said to be worth around 85 million euros.
According to the information confirmed by the spokesman of the German Ministry of Economy, the ministry advised the government not to ratify the agreement at the cabinet meeting, where the decision will be made on the issue. Cabinet members are expected to follow the advice.
Following the news, Elmos' shares on the Frankfurt Stock Exchange tumbled as much as 14 percent.
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