Optical components maker II-VI Inc said on Tuesday it had received the Chinese market regulators' antitrust clearance to buy laser maker Coherent Inc, the final approval the U.S. based-companies had been awaiting to close the deal.
With on-and-off trade tensions between Washington and Beijing, regulatory approval from China, which is an integral part of the supply chain, for acquisition deals have been in focus.
The Coherent deal had been under review of the State Administration for Market Regulation (SAMR) in China, which forced II-VI to delay the closing date. II-VI said it expects to close the deal by this week, around July 1.
Under II-VI's offer terms made in March 2021, Coherent stockholders will receive $220 in cash and 0.91 II-VI shares, which valued Coherent at about $7 billion at the time.
Coherent supplies laser-based equipment used in making organic light-emitting diode (OLED) displays, which are becoming a popular choice for smartphones and high-end televisions due to their energy efficiency and better contrast and higher refresh rates.
The company was the subject of a three-way bidding war last year after Lumentum Holdings first offered to buy it in a $5.7 billion deal. MKS Instruments and II-VI later jumped in with counter offers.