Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have received approval from US antitrust regulators for their proposed merger, according to the two companies.

The proposed merger between ASE and SPIL is still being reviewed by China's antitrust authority. The pair is expected to win antitrust approval in China - a major market for an OSAT firm - by June 2017, according to industry sources.

ASE's merger with SPIL is expected to have a positive rather than a negative impact on Taiwan's IC packaging and testing sector, commented Taiwan's Fair Trade Commission (FTC), which in late 2016 approved the proposed merger between the two IC backend houses.

ASE and SPIL in mid-2016 agreed to merge through the formation of a parent holding company, which will allow both firms to keep their legal entities and retain their existing operation models. The new holding company will own ASE through a share swap and acquire SPIL in an all-cash deal. Upon completion, both ASE and SPIL will be delisted while the holding company will trade its shares in Taiwan and ADS on New York Stock Exchange.

ASE and SPIL expect their merger deal to complete by the fourth quarter of 2017.

By: DocMemory
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