Yageo to hold 3rd meeting with Japanese firm on acquisition talks

Taipei, July 9 (CNA) Taiwan's Yageo Corp., the world's third-largest maker of multi-layer ceramic capacitors (MLCC), will hold a third round of talks with Japan's Shibaura Electronics next week as it seeks to acquire the negative temperature coefficient (NTC) thermistor maker.

Yageo said Wednesday it will meet with Shibaura in Taipei on July 17-18 to continue discussions from their June 18 meeting, aiming to explore potential synergies and exchange future business strategies.

"Yageo looks forward to continued engagement with Shibaura and deepening our mutual understanding," the company said in the English statement.

On May 9, Yageo launched a tender offer to acquire Shibaura at 6,200 yen (US$42.16) per share. This was a 14.8 percent increase from its previous offer of 5,400 yen, raised after rival MinebeaMitsumi boosted its bid to 5,500 yen from 4,500 yen.

MinebeaMitsumi initially offered 4,500 yen in mid-April, pushing Shibaura's stock up and prompting Yageo to raise its bid from 4,300 yen in February to 5,400 yen in April.

Since launching the tender offer, Yageo has extended the deadline four times to comply with Japan's regulatory process, while already securing approval from Taiwan's Ministry of Economic Affairs. The current deadline for the offer is July 15.

Market analysts say the upcoming meeting could help Yageo secure the 50 percent stake, around 7.62 million Shibaura shares, needed to fully take control of the Japanese company. Yageo expects to complete the acquisition by the third quarter of this year.

Yageo said Shibaura sent it a questionnaire Tuesday, which Yageo promised to respond to promptly and carefully.

The acquisition would boost Yageo's sensor business and help Shibaura leverage Yageo's global sales network and broad customer base to expand in the Americas and Europe, the Taiwanese company said.

Founded in 1977, Yageo has grown through acquisitions focused on high-end passive components, including U.S.-based Pulse Electronics for US$756 million in 2018, American rival Kemet Corp. for US$1.64 billion in 2000, and French firm Schneider Electric's Telemecanique Sensors for 686 million euro (US$803 million) in 2023.