The transaction, which also includes an investment from buyout fund Francisco Partners LP, now probably will be completed by March 28, STMicroelectronics said in a PRNewswire statement. STMicroelectronics, Europe’s largest maker of semiconductors, and Intel, world’s biggest, had planned to conclude the deal by the end of the year.

“The three parties continue to work to satisfy the conditions to closing for the transaction,” the statement said. The companies have received bank commitments to finance the deal “following significant turmoil in the debt capital markets.”  STMicroelectronics will receive less for its contribution to the business than previously announced, the statement added.

The combined company, to be called Numonyx, would have $3.6 billion in annual sales, bigger than market leader Spansion Inc., STMicroelectronics and Intel said in May when they announced the venture. STMicroelectronics will get 48.6 per cent of Numonyx’s shares, plus $364 million in a combination of cash and long-term notes when the deal closes, the statement said.

Fourth quarter loss

Previously STMicroelectronics had said it would get a 48.6 per cent stake plus $468 million. The cash portion will be no more than $130 million, STMicroelectronics said.

The company, which had previously said it would have a non-cash impairment loss on the transaction, will have “adjustments” to that loss in the fourth quarter, STMicroelectronics statement added.