Taiwan’s foreign investment review body, the Investment Commission of the Ministry of Economic Affairs (MOEAIC), gave the thumbs up to the proposed acquisition of Kemet by Yageo, according to GlobeNewswire.
The regulatory approval by the Taiwan authority is the last regulatory hurdle that the two-component manufacturers have to jump over before they can finally close the deal. By acquiring Kemet, Yageo not only secures third place in the passive electronics component industry but also successfully enters into the niche, profitable sectors such as vehicles, medical, and industrial.
The acquisition has passed antitrust reviews in Austria, Germany, the US, and China. This transaction also requires a green light by the authorities in charge of the review of foreign investments, including CFIUS and MOEAIC. Such cases highlight the importance of the early assessment of regulatory requirements in Taiwan and the need to prepare in advance for the regulatory clearance to avoid delay or risk of derailing a deal.