Denso, the automotive parts supplier under Japan's Toyota Motor Group, is pursuing an acquisition of domestic semiconductor manufacturer Rohm.
According to Nikkei on Thursday, Denso, which acquired approximately 5% of Rohm shares in September last year, plans to acquire full ownership of Rohm through a tender offer.
"Denso appears to be targeting full acquisition of shares," the newspaper reported, adding that "the purchase price is expected to reach 1.3 trillion yen (approximately $8 billion)." As of Wednesday, Rohm's market capitalization stood at approximately 1.1 trillion yen (approximately $7 billion).
Both companies stated that while various discussions are underway, nothing specific has been decided. The two companies share a common focus on power semiconductors used in electric vehicles and other applications. Power semiconductors are components widely used for energy efficiency in automobiles, home appliances, and other electronic devices—a sector where Japan holds competitive advantages and the government is actively promoting development.
