SPIL/ASE likely to refile with MOFCOM to buy more time

Siliconware Precision Industries (SPIL) [TPE:2325] and Advanced Semiconductor Engineering (ASE) [TPE:2311] are likely to refile their proposed combination with China’s Ministry of Commerce (MOFCOM) in order to yield more time for the parties to negotiate with the antitrust regulator for a final remedy plan, two sources familiar with the situation said.

Talks about a remedy plan are ongoing, the two sources and a third source familiar said. None of the sources would comment specifically on the talks, but the first source said, “the conversation is definitely moving [in] a positive direction.”

Nonetheless, it is very unlikely that the two Taiwanese outsourced semiconductor assembly and testing (OSAT) service providers are going to obtain approval from MOFCOM before the regulator’s phase-III review period ends on 11 June, the first source said. Approval from MOFCOM is the final regulatory clearance required for the deal.

The two OSAT companies are strongly committed to the deal, the first source said. As a result, ASE and SPIL will refile in order to carry on having remedy conversations with the MOFCOM and iron out the remaining concerns, the source said.

If the parties refile, said the same source, then the worst scenario is that the companies have to go through another full term of 180 day review, which would last until December.

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