By Dhirendra Tripathi
Investing.com – Atotech (NYSE:ATC) shares rose more than 6% Friday on a StreetInsider report that MKS Instruments (NASDAQ:MKSI) has approached the specialty chemicals group with an acquisition offer.
MKS shares were weaker by 2.5%.
The target company has a market capitalization of $4.91 billion and the suitor almost double that at $9.76 billion.
The potential combination would expand MKS's offerings in chip manufacturing through the addition of Atotech's plating chemicals, the report said.
The deal, if it comes to pass, would come a few months after Atotech was floated on the stock market by its private equity owner Carlyle Group (NASDAQ:CG).
Based in Berlin, Atotech's offerings are used in the manufacturing of smartphones, as well as for automotive, heavy machinery and household appliances.
MKS is a manufacturer of instruments and systems used in the semiconductor, industrial technologies and life and health sciences industries.
As demand for smartphones, laptops, LEDs and smart devices booms in the post pandemic world, semiconductor and chip manufacturing is witnessing billions of dollars of investments from the likes of Intel (NASDAQ:INTC), Taiwan Semiconductor Manufacturing (SA:TSMC34), NXP (NASDAQ:NXPI), Qualcomm (NASDAQ:QCOM) and Advanced Micro Devices (NASDAQ:AMD). As a result, there is a strong demand for machines and raw materials that go into making those chips.