Merck is seeking to expand its capabilities in the global semiconductor solutions market in the upcoming new year of 2023 by completing the acquisition of a domestic company recognized for its technological prowess.

Merck, a semiconductor materials company, announced on the 2nd that it has completed the acquisition of M Chemicals Inc. to operate the chemical business of Mecaro Inc. Through this, Merck expects to expand a key segment of its semiconductor solutions portfolio while advancing its localization efforts.

The transaction was completed upon fulfillment of the contract liquidation conditions and other preconditions for closing the transaction. As a result of this acquisition, Merck acquires a state-of-the-art manufacturing and research and development facility located in Korea with approximately 100 employees.

This acquisition was pursued as part of Merck Electronics' business level-up program to invest more than 3 billion euros in innovation and production capacity from 2021 to 2025, centered on four mutually reinforcing core priorities: scale, technology, portfolio, and capabilities.

"We will continue to expand our overall global production capacity along with our regional capabilities in Korea," said Shresh Rajaraman, Senior Vice President and Head of Merck's Thin Film Solutions business. "The acquisition of M Chemical is another milestone in the expansion of our electronics business, particularly in semiconductor solutions, which is one of the 'Big 3' growth engines."

Meanwhile, this acquisition deal consists of a cash upfront payment of 75 million euros (approx. 100 billion won) and conditional payments of up to 35 million euros (approx. 46.7 billion won) for milestones, and the total transaction amount is reported to reach up to 110 million euros (approx. 146.9 billion won).