FRANKFURT/HONG KONG (Reuters) -Siltronic said on Wednesday its management agreed to the takeover of the German silicon wafer maker by Taiwan’s GlobalWafers for 3.75 billion euros ($4.53 billion). The planned merger, flagged by the target at the end of last month, would create the world’s second-largest player in the 300-millimeter wafers market, behind Japan’s Shin-Etsu. Former Siltronic parent Wacker Chemie said separately it made a binding commitment to transfer its entire 30.8% stake in Siltronic to GlobalWafers. The tender offer for 125 euros ($151.03) per share will be subject to a shareholder acceptance threshold of 65%, the prospective merger partners said. “The combination of Siltronic as one of the technology leaders in the wafer sector and GlobalWafers with its excellent supply chain management and competitive cost structure will create a ‘best-in-class’ wafer producer,” the German group said. Doris Hsu, chairwoman of GlobalWafers, said the two companies complement each other well and that she is “cautiously optimistic” the deal will receive all due regulatory approvals. “The combined company will have 20 factories in 10 countries. Once the platform is established, it will mean technology upgrade for our clients,” Hsu said in a phone interview Thursday morning. Analysts have said harsh competition and cyclical swings have put pressure on smaller players in the silicon wafers market to merge to achieve economies of scale. Siltronic 10 days ago said it was in advanced talks to be acquired by GlobalWafers for 125 euros per share, prompting its shares to jump. The stock closed at 125.50 euros on Wednesday, reflecting hopes of a higher offer. Siltronic investor Argonaut Capital has said the proposed price was unfair to minority shareholders, who were being “corralled into selling out at a cyclical bottom in the semiconductor wafer industry,” which Siltronic has rejected. GlobalWafers’ Hsu said the offer price is “very attractive”. The Taiwanese company is financing the transaction with a bridge loan from Singaporean lender DBS, she added. The deal is expected to be completed in the second half of 2021, Hsu said. ($1 = 0.8278 euro)