BHP Billiton made its move on UMC today, offering shareholders $1.30 cash for each UMC share, valuing the minerals explorer at $204 million.
The offer was conditional on UMC not proceeding with a major investment by the China Railway Materials Commercial Corp Group.
That CRM deal announced last month was described by UMC at the time as "groundbreaking'' and a "significant milestone'' for the company.
It was seen as a strategic move that could help the company develop its iron ore deposits and obtain key contacts inside China.
But today, the directors said the BHP Billiton proposal crystallised value for UMC shareholders now.
"The directors have agreed to unanimously recommend BHP Billiton's offer (which is conditional on the CRM placement not being completed) in the absence of a superior proposal,'' UMC told the stock exchange.
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