FRANKFURT (Reuters) – Germany’s Merck KGaA sealed a $6.5 billion takeover deal with Versum Materials after overturning a deal it had agreed with rival bidder Entegris.

FILE PHOTO: A logo of drugs and chemicals group Merck KGaA is pictured in Darmstadt, Germany January 28, 2016. REUTERS/Ralph Orlowski/File Photo

A bet on a recovery in electronic materials markets for semiconductor makers, the transaction will boost the share of profit that diversified Merck derives from high-tech chemicals to 27 percent from 19 percent previously.

Merck, also maker of pharmaceuticals and biotech production gear, this week won the backing of Versum’s board for its $53-per-share offer, lifted from $48 previously, having been spurned for weeks.

“The business combination is expected to significantly strengthen Merck’s Performance Materials business sector, creating