SMIC Clears Final Hurdle for $6 Billion SMNC Takeover

Semiconductor Manufacturing International Corporation (SMIC) has successfully navigated the last regulatory requirement to purchase the remaining 49% interest in SMNC for 40.6 billion yuan (US$5.97 billion). Established in 2013, SMNC focuses on 12-inch wafer foundry services and serves as a vital manufacturing hub for SMIC in Beijing. Following this acquisition, SMNC will be fully owned by SMIC, which currently possesses 51%. The new shares will be priced at 74.20 yuan (US$10.91) each, accompanied by a 12-month lock-up period. This acquisition is projected to enhance SMIC's net profit and earnings per share while maintaining its core operations. Pro forma estimates indicate that basic earnings per share could increase from 0.49 yuan to 0.55 yuan for January to August 2025 if the transaction is finalized.