Denso, chipmaker Rohm hold talks on potential $8.3 billion acquisition
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
TOKYO, March 6 : Toyota supplier Denso is in talks to acquire shares of chipmaker Rohm in a potential $8.3-billion deal that will expand the auto parts maker's control over power management chips used in EVs and data centres.
Denso, a pillar of the Toyota group and one of the world's largest makers of auto parts, is in talks with Rohm over the possible acquisition of shares, both companies said in statements on Friday, with each adding that nothing had been decided.
Kyoto-based Rohm is a significant player in power chips, used to efficiently control electric power in cars, electronic devices and industrial equipment.
It is an area where Japan still holds strength despite its shrinking presence in the global chip industry. Still, the Japanese industry remains fragmented and Japan's powerful trade and economy ministry has long said that consolidation was needed in the space.
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading
Shares of Rohm were untraded following the companies' statements, flooded with buy orders.
Denso shares were down 4.1 per cent.
The news was first reported by the Nikkei business daily, which said the deal could reach as much as around 1.3 trillion yen ($8.3 billion).
($1 = 157.4700 yen)
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app