Abu Dhabi to Purchase Chartered
September 7, 2009 by Mark Ellis
Filed under Business
Abu Dhabi has decided to buy Singapore’s Chartered Semiconductor Manufacturing, a state-controlled technology company, for $1.8 billion. In purchasing the company, Abu Dhabi hopes to create a competitor to United Microelectronic of Taiwan in a bid to become the most profitable maker of customized chips.
Advanced Technology Investment Company, an investment venture owned by Abu Dhabi, will facilitate the purchase of Chartered Semiconductor Manufacturing. As part of the agreement, Abu Dhabi will pay $1.86 per share, or two Singapore cents higher than the company closed on Sept. 4, in cash, this according to a statement that the buyer released on Monday.
Abu Dhabi is expected to combine Chartered, the maker of chips used in Xbox 360 systems, a move that has already created many waves in the industry. According to Steven Pelayo, an analyst at HSBC Holdings in Hong Kong, the combination of these two companies presents threatening competition to other players in the industry.
Abu Dhabi Emirates Palace (Image: Flickr)
