Auto meets tech
: analysis of the proposed acquisition of Infineon by Mercedes-Benz

  • Kristian Volker Klieber (Student)

Student thesis: Master's Thesis

Abstract

This dissertation addresses the potential 100% acquistion of Infineon Technologies AG by Mercedes-Benz Group AG. Mercedes-Benz Group AG, one of the most important car manufacturers in the world, seeks to pioneer the direction of technological leadership in the field of electromobility through the acquisition of Infineon Technologies AG, the largest European semiconductor manufacturer, as well as protect itself against semiconductor supply bottlenecks. In this dissertation, enforceability of the potential transaction, theoretical and practical sense, potential synergies, the joint enterprise value and the potential purchase price are examined and analysed. The analysis leads to the conclusion that, after reviewing the identified risks, a transaction should be carried out. The transaction will result in a combined company value of €256.0 billion with the total synergies, deducting transaction and integration costs amounting to €21.4 billion. The acquisition price of €54.5 billion is based on an assumed acquisition premium of 30% on the current share price (17/08/2023), which will incentivize Infineon’s investors to sell while simultaneously increasing shareholder value for Mercedes-Benz. The increase in shareholder value amounts to 12.3%. The transaction process should be collaborative and completed with a cash payment.
Date of Award17 Oct 2023
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorAntónio Borges de Assunção (Supervisor)

Keywords

  • Automotive
  • Semiconductor
  • Acquisition
  • Analysis
  • Valuation
  • Synergies

Designation

  • Mestrado em Finanças

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