Japan Co. to Takeover US Chipmaker for $6.7 Billion

Japanese semiconductor maker Renesas Electronics on Tuesday announced the purchase of Integrated Device Technology of the US in a deal worth more than 733 billion yen ($6.7 billion), Nikkei reported. Renesas will pay $49 a share to acquire all outstanding IDT shares, a premium of more than 29% versus IDT’s closing price on Aug. 30. Renesas plans to finance the purchase with 679 billion yen in bank loans. It will not issue additional shares to pay for the transaction, the company said. “While Renesas has strength in automotive and industrial products as a top manufacturer, IDT has significant technology related to wireless and sensors,” Renesas President and CEO Bunsei Kure said at a news conference the same day. “There will be a complementary relationship. We can cultivate emerging markets, such as data centers, self-driving cars and the internet of things. This merger is an appropriate measure for becoming a world champion,” Kure said. To complete the deal, the two companies must have the approval of antitrust authorities in major international markets.