Major Japanese companies team up to save Renesas

Article by Christian A., on September 24, 2012

Toyota Motor Corp. is leading a consortium of Japanese companies in order to rescue Renesas Electronics to oppose a bid for the chipmaker by the U.S.-based private equity firm KKR, according to the Nikkei business daily last Saturday. This group of automakers have the support of a state-run fund.

The Nikkei said that the group aims to invest 100 billion yen ($1.3 billion) in Renesas to obtain a majority stake in the company before the end of the year.

The publication didn’t cite a source. The Nikkei also announced that the group included the government's Innovation Network Corp., Panasonic Corp., Nissan Motor Co., Honda Motor Co., Canon Inc., Fanuc Corp. and auto parts makers Denso Corp. and Keihin Corp.

Denso is an affiliate of Toyota. In addition, KKR is in talks to make an investment of about 100 billion yen in Renesas, which will be its biggest investment in Japan, sources told Reuters last month. This agreement would result to KKR getting over 50% of cash-strapped Renesas.

It could also hasten the speed of its restructuring amid declining prices and aggressive overseas competitors.

The rival deal from the Japanese group, which may possibly ask German industrial group Bosch GmbH to join it, would be shown to Renesas shareholders, NEC Corp., Hitachi Ltd. and Mitsubishi Electric Corp. this October.

Toyota has yet to comment on the report. In a statement, Renesas said that the information hasn’t been released yet. As they are customers of Renesas, Toyota and other Japanese manufacturers may be convinced to assist the chipmaker so that their supply chains can be secured, an unknown source told Reuters.

Topics: renesas, japan

If you liked the article, share on:

Comments

Recommended

The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries