The pending merger of two Shanghai-based fabless companies, Spreadtrum Communications and RDA Microelectronics, through two separate acquisitions pulled off by Tsinghua Unigroup is "not a done deal," according to several industry sources.
Indeed, a number of press releases RDA had to put out in last December alone speak volumes about both the company's desperation to put the proposed acquisition news behind it and its inability to do so.
In a press release titled "RDA Microelectronics Responds to Certain Media Reports on the Pending Merger With Tsinghua Unigroup," issued December 4, RDA said:
We have been maintaining close discussions with Tsinghua Unigroup regarding the regulatory approvals required to complete the Merger, and have provided Tsinghua Unigroup with assistance and information in such regard in compliance with the Merger Agreement. We and Tsinghua Unigroup will continue to cooperate with each other in obtaining the relevant approvals that are required for the consummation of the Merger. We also understand from Tsinghua Unigroup that it is on track to obtain the pre-clearance of the Merger from the National Development and Reform Commission of China.
In a subsequent press release issued on Dec. 20, RDA said that Tsinghua Unigroup and RDA Microelectronics had amended the merger agreement due to relaxation of certain PRC regulatory approval requirements.
However, as of today, the PRC regulatory approval is still not here.
Earlier this year, Deal Reporter reported:
China's National Development and Reform Commission (NDRC) is unlikely to grant Tsinghua Unigroup pre-clearance for its proposed bid for RDA Microelectronics prior to the expiry of an outstanding approval that was first given to rival bidder Shanghai Pudong Science and Technology Investment, a source close to NDRC told this news service.
While RDA's shareholders late last year voted to approve the deal, the NDRC's votes, obviously, are not all in. Stay tuned to this channel.
— Junko Yoshida, Chief International Correspondent, EE Times