Taiwan’s Yageo Corp. secured Japanese regulatory clearance for its contested acquisition of thermistor manufacturer Shibaura Electronics, removing the final obstacle to its ¥7,130 ($48.39) per share tender offer.
The Foreign Direct Investment approval concludes a seven-month security review under Japan’s Foreign Exchange and Foreign Trade Act, reflecting Tokyo’s heightened scrutiny of deals involving strategic technologies. Yageo accepted undisclosed conditions to prevent sensitive technology leakage, according to sources familiar with the matter.
The passive component giant’s $740 million bid significantly exceeds rival offer from MinebeaMitsumi, the Japanese manufacturer that Shibaura recruited as a white knight defender. MinebeaMitsumi’s ¥6,200 per share proposal appears increasingly unlikely to succeed.
Yageo extended its tender deadline by 10 business days to September 18, citing regulatory requirements. The Taiwan-based company, which supplies Apple and ranks as the world’s largest chip resistor manufacturer, has persistently pursued Shibaura despite initial resistance from the target’s management.
The acquisition would strengthen Yageo’s sensor capabilities, building on its 2020 purchase of Japan’s TOKIN. Shibaura’s negative temperature coefficient thermistors serve automotive, medical and industrial applications deemed strategically important by Japanese authorities.
The transaction tests Japan’s 2023 guidelines aimed at reducing stigma around unsolicited foreign takeovers while protecting national security interests.
