The Philippine Competition Commission (PCC) has approved the acquisition by Analog Devices Inc. (ADI) of shares in Maxim Integrated Product, Inc. (Maxim), both NASDAQ listed firms, resulting to a merger between Maxim and ADI’s unit Magneto Corp. (Magneto).
Maxim will be the surviving entity.
ADI is buying 69 percent Maxim in an all-shares transaction where Maxim’s shareholders will receive 0.630 of a share of ADI’s common stock for each share of Maxim’s common stock they hold. Maxim shareholders will own 31 percent of the merged entity.
ADI is engaged in the business of designing, manufacturing, and marketing analog, mixed-signal and digital signal processing technologies used in instrumentation, automation, communications, healthcare, automotive and other industries. Maxim meanwhile produces a range of analog, mixed-signal and digital circuits used in automotive, wearables, and data center markets.
In asking for PCC nod, the parties argued that the merger will lead to efficiencies such that Maxim’s consumer-centered products will complement ADI’s industrial applications.
The PCC following its review said the transaction does not result in substantial lessening of competition in the semiconductor market due to the global nature of the transaction, “having no hold among numerous global players competing in the industry.”
“The PCC found that the parties’ subsidiaries in the Philippines have limited business presence in the local market, where they export all their output to their respective parent entities and affiliates outside the country,” it added.
ADI and Maxim’s operation in the Philippines include for-export fabrication, testing, and assembly sites in the Philippines. ADI’s operations are under units Analog Devices (Philippines) Inc. and Analog Devices Gen. Trias, Inc. while Maxim operations are under units Maxim Philippines Holding Corp., Maxim Philippines Operating Corp., Maxim (IP) Enterprise Solutions (Philippine Branch), and Maxim Integrated Products International Sales Ltd.