By Miranda Li

China’s State Administration for Market Regulation approved the acquisition by U.S. company II-VI Incorporated of Coherent — the global leading optical component supplier. 

The SAMR’s notice on the case appeared June 28 on its website (https://www.samr.gov.cn/fldes/tzgg/ftj/202206/t20220628_348220.html). The approval for the deal has four conditions that require the company to abide by its obligations in the global and China markets without disturbing the supply chain. 

The acquisition was completed on July 1, 2022, with a total purchase price of about $7 billion, said Coherent.

According to Coherent’s official release, the new brand Coherent, jointly formed by II-VI Incorporated and Coherent, combines formidable complementary strengths of the two in providing photonic solutions, compound semiconductors, aerospace and national defense, laser technologies, life sciences, additive manufacturing, and systems.

The combined business will be more distributed across the value chain from materials to components, subsystems, systems, and services, mainly serving industrial, communications, electronics, and instrumentation markets.

Under the terms of the merger agreement, each share of Coherent common stock was converted into the right to receive $220.00 in cash and 0.91 of a share of II-VI common stock.