SMIC’s Acquisition of SMNC Clears Final Regulatory Hurdle in $6 Billion Deal

Semiconductor Manufacturing International Corporation (SMIC), China’s largest wafer foundry, has received approval from China’s securities regulator for the acquisition of the remaining 49% stake in Semiconductor Manufacturing North China (SMNC), paving the way for a significant restructuring on Shanghai’s Star Market. The approval allows SMIC to issue 547.2 million A-shares to five shareholders of SMNC, valued at 40.6 billion yuan (US$5.97 billion), making SMNC a wholly owned subsidiary of SMIC. The transaction, priced at 74.20 yuan (US$10.91) per share, includes a 12-month lock-up period for the sellers.