Taiwan Mask Corporation and Innova Inc. filed for approval to engage in a merger pursuant to Article 11 of the Fair Trade Law
Case:
Taiwan Mask Corporation and Innova Inc. filed for approval to engage in a merger pursuant to Article 11 of the Fair Trade Law
Key Words:
Taiwan Mask Corporation, Innova Inc., combination
Reference:
Fair Trade Commission Decision of July 5, 2000 (the 452nd Commissioners' Meeting); Approval Decision (89) Kung Chieh Tzu No. 667
Industry:
Precision Industrial Instruments and Machinery Production Industry (3319)
Relevant Laws:
Summary:
1. Taiwan Mask Corporation and Innova Inc. planned to engage in a merger. Under the merger, TMC would be the surviving enterprise and Innova Inc. would be the defunct enterprise. Because the planned merger constituted a combination of enterprises under Article 6(1)(i) of the Fair Trade Law, they filed with the Fair Trade Commission (the Commission) for approval to engage in the merger pursuant to Articles 11(1)(i) and 11(1)(ii) of the Fair Trade Law. 2. The merger would enable Taiwan Mask Corporation to integrate the resources of the two companies, leading to increased scale economies, more stable prices and lower production costs. The merger would also support rapid development of integrated circuit production processes and designs, active investment in mask production processes, and raising in-house production capabilities and international competitiveness. The mask production industry is an open market. The merger would not make it harder for other enterprises to enter the market, nor would it noticeably raise restrictions to competition. The Commission found that the overall economic advantages of the merger exceeded the disadvantages of it in the form of restrictions to competition. The Commission therefore approved the merger pursuant to Article 12 of the Fair Trade Law. Appendix: Taiwan Mask Corp.'s Uniform Invoice Number: 22099408 Innova Inc.'s Uniform Invoice Number: 22099511 Summarized by Yang Chia-hui; Supervised by Shih Chin-ts'un