Taipei: Taiwan's Yageo Corp., a leading global manufacturer of multi-layer ceramic capacitors (MLCC), is set to engage in a third round of acquisition discussions with Shibaura Electronics of Japan. The talks are scheduled to take place next week in Taipei, as Yageo seeks to acquire the Japanese firm, known for its negative temperature coefficient (NTC) thermistors.
According to Focus Taiwan, Yageo announced that the meetings with Shibaura are intended to explore potential synergies and discuss future business strategies. The discussions will continue from a previous meeting held on June 18. Yageo expressed its eagerness to further engage with Shibaura and enhance their mutual understanding in an official statement.
In an effort to acquire Shibaura, Yageo initiated a tender offer on May 9, proposing to buy shares at 6,200 yen (US$42.16) each. This offer represented a 14.8 percent increase from a previous bid of 5,400 yen, raised after a competing offer from MinebeaMitsumi at 5,500 yen. MinebeaMitsumi's initial offer of 4,500 yen in mid-April had previously spurred Shibaura's stock prices, causing Yageo to adjust its earlier bid from 4,300 yen in February to 5,400 yen in April.
Throughout the acquisition process, Yageo has extended the deadline for its tender offer four times to adhere to Japan's regulatory requirements, while securing approval from Taiwan's Ministry of Economic Affairs. The current deadline for the offer is set for July 15.
Market analysts suggest that the upcoming meeting could be pivotal for Yageo to secure the necessary 50 percent stake-approximately 7.62 million shares of Shibaura-to gain full control of the Japanese company. Yageo aims to finalize the acquisition by the third quarter of this year. In preparation, Shibaura has sent a questionnaire to Yageo, which the Taiwanese company has pledged to address promptly and thoroughly.
The acquisition is expected to bolster Yageo's sensor business and enable Shibaura to leverage Yageo's extensive global sales network and customer base, facilitating expansion into the Americas and Europe. Yageo, established in 1977, has a history of growth through acquisitions, including the purchase of Pulse Electronics for US$756 million in 2018, Kemet Corp. for US$1.64 billion in 2000, and Telemecanique Sensors from Schneider Electric for 686 million euros (US$803 million) in 2023.