The founders are considering an exit from the automotive semiconductor supplier, several people told Reuters on Thursday. Elmos has reportedly mandated investment bank Morgan Stanley to manage the sale process.
Preliminary discussions are underway, including with major semiconductor groups, one insider noted. Competitors such as Infineon or U.S.-based Qualcomm would be logical candidates for an acquisition. However, a final decision to proceed with a sale has not yet been made. Neither Elmos nor Infineon wished to comment on the matter.
A change of ownership at Elmos would likely trigger intense scrutiny from German and European antitrust authorities. A few years ago, the sale of Elmos's wafer production to a Chinese company collapsed following an objection by the German federal government. The business unit was instead sold to a U.S. bidder.
The largest shareholder in Elmos, with a stake of nearly 21 percent, is the investment firm of co-founder Klaus Weyer. He launched the company in 1984 alongside Günter Zimmer and Norbert Ellenberger. The market capitalization of the automotive semiconductor specialist currently stands at approximately 2.3 billion euros. Last year, Elmos generated record revenue of 583 million euros, while operating profit contracted by nearly 13 percent to 127 million euros.
The European semiconductor industry is currently undergoing a period of consolidation. U.S. chip equipment makers Applied Materials and Lam Research have set their sights on Dutch rival BE Semiconductor. Last year, Qualcomm acquired British chip designer Alphawave, and Infineon snapped up parts of U.S. competitor Marvell.
(Reporting by Amy-Jo Crowley, Milana Vinn and Hakan Ersen, edited by Ralf Banser. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
