Merck well positioned in semiconductor materials business
The pharmaceuticals and technology group Merck believes it is well placed to benefit from all the hype surrounding AI, via its semiconductor materials business. In an interview with Börsen-Zeitung, CFO Helene von Roeder emphasises that the company has taken advantage of the sharp dip in the semiconductor business, to position itself with its range of materials for chip manufacturers in the field of artificial intelligence and big data systems.
Positive margin effect
The anchoring in the AI segment should have a positive impact on the Electronics division's margin development. „With these products, Merck is at a level of quality that almost no other company can match. The fact that we can offer these high-quality materials has put us in an extremely strong position,“ emphasises von Roeder. However, the CFO also warns that the overall chip industry has not yet recovered, and it remains to be seen when the upswing will start. „Then the less high-margin materials will also come back into play.“
Separation from pigments
The DAX-listed company has set itself the goal of switching back to growth in its operating business in 2024, and also wants to actively look for acquisitions, though the investment grade rating is to be maintained. Merck has already proven in the past that debt can be quickly reduced again after acquisitions, says von Roeder. "Our history shows that“.
The CFO, who also worked in international investment banking for many years, emphasises that Merck will not make acquisitions at exorbitant prices. The company can wait until the perfect target, the perfect price and the perfect moment has arrived, and is financially prepared: „We definitely have enough room for manoeuvre to buy the targets we would like to have", she says.
Chinese GNMI steps in
Merck recently reported a divestment, having finalised the long-awaited sale of its pigments business. The business segment, which most recently had sales of 411 million euros and 1,200 employees, will be acquired for 665 million euros by the Chinese company Global New Material International Holdings, one of the largest manufacturers of pearlescent pigments.
