Thales files Gemalto takeover for EU review
19 June 2018. By Nicholas Hirst.
French security firm Thales has requested EU approval for its bid to take over Dutch chipmaker and online security specialist Gemalto. The European Commission has set a July 27 deadline to decide on the transaction.
Paris-based Thales launched an all-cash offer for Gemalto’s outstanding shares on March 28. The offer is valued at about 4.8 billion euros ($5.6 billion).
The parties say they expect the deal to close in the second half of 2018.
Amsterdam-based Gemalto, which makes chips for credit cards and SIM cards, provides businesses, utilities and governments with ways to authenticate identity and protect data.
Regulators are expected to examine the degree of competition between the companies' hardware security-module business.
Thales notified the deal as a full Form CO, indicating that the commission will carry out a full market investigation, seeking views from a range of customers and rivals. This differs from the more limited inquiries that the regulator conducts under its "simplified" procedure.
The phase I investigation will be extended by 10 working days if the company offers remedies to allay any competition concerns.
Shares in both companies trade on Euronext.
The commission's case file number is M.8797.
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