TAIWAN Trends and Developments Contributed by: Eddie Chan, Derrick Yang, Winnie Lin and Yuan-Yuan Lo, Lee and Li Attorneys-at-Law
offtakers. The Taiwanese government is actively promoting the development of the green ener- gy industry to enhance energy autonomy and to reduce the environmental impact of fossil fuels. Recognising the potential of the renew- able energy market, Taiwanese enterprises have vigorously invested in this sector. Further, the legal framework and supporting measures pertaining to renewable energy in Taiwan are becoming mature. This development has fos- tered optimism among international renewable energy investors, who are increasingly drawn to Taiwan’s burgeoning renewable energy sector, leading to a surge in investments in and acquisi- tions of power plants. Technology M&A deals in Taiwan for 2023 and 2024 In terms of outbound M&A transactions, the largest M&A transaction in Taiwan’s technology industry in 2023 was the world-leading elec- tronic components distributor WPG Holdings’ acquisition of the Canadian peer Future Elec- tronics for USD3.8 billion. This cross-border acquisition aimed to achieve a high degree of complementarity in product lines and customer bases, thereby enhancing synergy and profitabil- ity. This transaction set a record for the highest value in Taiwan’s M&A history for an outbound acquisition. In 2024, there were several significant M&A cases in the technology industry. AU Optron- ics completed its acquisition of 100% equity in Behr-Hella Thermocontrol GmbH (BHTC) for EUR600 million in April 2024 to enhance its auto- motive display technology value and deepen vertical market applications. In May 2024, Fox- conn completed the acquisition of a 50% stake and Class A preferred shares in ZF Chassis Modules GmbH for EUR332 million, expanding its business scope from automotive electronics
to power chassis systems, thereby increasing its vertical integration capabilities in electric vehi- cles. From the above cases, it can be seen that in recent years, Taiwanese companies have engaged in cross-border mergers and acquisi- tions primarily for the purposes of acquiring key resources or market channels, integrating the supply chain, or as a strategic goal for global expansion. Additionally, topics such as genera- tive AI, internet of vehicles (IoV) and energy tran- sition have also been leading global investment trends in recent years, and Taiwan’s technology industry is expected to benefit from the growing demand. Regarding inbound M&A transactions, Uber announced in May 2024 its acquisition of Food- panda’s delivery business in Taiwan for USD950 million, pending approval from the competent authorities. The business to be acquired also relates to software and IT (digital platform). Taiwan’s M&A Legal Regime Acquisitions of Taiwan companies are commonly structured as an acquisition of the shares in the company (including mergers, share swaps or tender offers) or an acquisition of the assets/ business in the company (which can be imple- mented by way of asset sale or spin-off). Cash and shares or a combination of both are commonly used as considerations in M&A trans- actions. A fairness opinion from an independent expert such as a CPA is required on the reasona- bleness of price terms. The main legislation governing M&A activities in Taiwan is the Business Mergers and Acquisi- tions Act. Other statutes including the Securities and Exchange Act, the Company Act, Labour
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