Greg Rumeliotis and Crystal Hu
New Delhi: Semiconductor equipment maker MKS Instruments Inc has approached Atotech Ltd, a specialty chemicals group with a market value of $ 4.7 billion, to offer the acquisition, sources familiar with the matter said Thursday.
The potential combination will expand MKS’s offerings in chip manufacturing by adding Atotech coating chemicals. This will come a few months after Atotech is listed on the stock market by its private equity owner Carlyle Group Inc.
The sources said there was no confidence that Atotech would negotiate with MKS or that any deal would be reached, demanding anonymity as the matter is confidential. Details of the proposal could not be found.
Representatives for MKS and Carlyle declined to comment, while Atotech did not respond to a request for comment.
Berlin-based Atotech uses products to make smartphones, cars, heavy equipment and home appliances. Its shares are up about 40% since Carlyle went public in February.
MKS is a manufacturer of devices and systems in Andover, Massachusetts, used in semiconductors, industrial technology, and life and health sciences. Its market capitalization is $ 10 billion.
In February, MKS made a $ 6 billion offer to laser manufacturer Coherent Inc. It lost out to rival II-VI Inc, which applied for $ 7 billion for Coherent.
According to an investor presentation posted on its website last month, ISS sees acquisitions at the core of its strategy with 22 such deals, including the $ 1 billion acquisition of ESI Acquisition in 2019.