Taiwanese electronics giant Yageo raises bid to acquire Japanese company Shibaura Electronics. The latest offer aims to outpace rival MinebeaMitsumi, a major Japanese parts supplier. This aggressive move shows Yageo’s commitment to securing a foothold in the Japanese electronic components market.
Yageo initially offered 6,635 yen per share. However, in response to MinebeaMitsumi’s competing bid, Yageo raises bid again. The company recently announced an increased offer of approximately 7,100 yen per share. This new offer is about 15% higher than MinebeaMitsumi’s 6,200 yen per share bid. This premium signals Yageo’s strong desire to convince Shibaura shareholders to accept its offer.
The total value of the acquisition is expected to reach around 110 billion yen. By raising its bid, Yageo wants to discourage Shibaura shareholders from accepting MinebeaMitsumi’s offer early. This strategy aims to sway more investors toward Yageo’s proposal by making it more financially attractive.
On the other hand, MinebeaMitsumi has decided not to increase its offer price or extend the bidding deadline. The Japanese company also criticized Yageo for repeatedly extending its offer without obtaining the necessary approval under Japan’s Foreign Exchange and Foreign Trade Act (FEFTA). This regulatory concern could impact the final decision.
Yageo’s FEFTA review is now scheduled, after two previous extensions. This regulatory process will determine whether the acquisition can proceed under Japan’s strict foreign investment laws. Despite these hurdles, Yageo remains confident in completing the deal.
In addition to the financial and regulatory challenges, Yageo has publicly stated that it intends to preserve Shibaura’s core identity. Yageo raises bid while emphasizing it will maintain Shibaura’s operational independence. The company values Japan’s leadership in electronic component technologies and plans to support it after the acquisition.
Furthermore, Yageo’s status as a major supplier to tech giants like Apple and Nvidia demonstrates its strategic importance in the global electronics supply chain. Acquiring Shibaura could strengthen Yageo’s product portfolio and enhance its market presence in Japan and beyond.
In summary, Yageo raises bid in a competitive effort to acquire Shibaura Electronics, facing regulatory scrutiny and shareholder decisions. This high-stakes acquisition battle could reshape the electronic components industry landscape in the near future.
