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Renesas is ready to buy Dialog Semiconductor for $ 6 billion
08.02.2021 [07:59],
Alexey Razin

Last year, the volume of transactions in the semiconductor industry more than doubled to $ 144 billion, this year will also not do without mergers and acquisitions. British component developer Dialog Semiconductor has confirmed that Japan’s Renesas Electronics is in talks to buy its assets for about $ 6 billion. The final decision has not yet been made, so the deal may not take place.

Image Source: Nikkei Asian Review

Renesas to pay approximately € 67.5 per share of Dialog Semiconductor. The latter is up 25% YTD, and Renesas’ announced purchase price suggests a 20% premium to Dialog Semiconductor’s stock price as of Friday evening. The buyer is ready to deposit the full amount in cash. Shares of Renesas itself on the Japanese trading floor after the publication of the news dropped in price by 6.9%.

It is noted that in the early stages of negotiations, the European company STMicroelectronics NV competed with the Japanese company, but Renesas was able to offer the best price. The value of capitalization of Renesas Electronics at the end of last week was $ 20.5 billion, the company is one of the largest suppliers of automotive electronic components. In 2021, she spent $ 6 billion on the purchase of assets of the American company IDT, so the strategy of expanding the business of the Japanese corporation at this stage may imply new acquisitions.

Dialog and Renesas have been collaborating for over ten years, and in August last year they began working together in the automotive electronics segment. Renesas now has until March 7 this year to confirm its intentions to buy Dialog Semiconductor, or to publicly abandon them.

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