Yageo: discussed conditions with Japan ministry over purchase

Yageo: discussed conditions with Japan ministry over purchase

In a significant development in the ongoing bidding battle for Shibaura Electronics, Taiwan's Yageo has discussed the proposed acquisition with the Japanese Ministry of Finance. The discussions come as Yageo seeks national security clearance for its unsolicited offer to acquire the Japanese thermistor sensors maker.

Yageo, the world's largest maker of chip resistors, raised its tender offer price for Shibaura Electronics by 7% to 6,635 yen a share on August 22. This move effectively makes the outcome of the Japanese government's ongoing national security review for the foreign takeover a key determinant in the acquisition process [2].

The Japanese government has extended the review process twice, which has raised concerns about the possibility of Yageo's offer being completed. Minebea Mitsumi, the rival bidder brought in by Shibaura to counter Yageo's offer, has stated that it will neither raise its offer nor extend the offer deadline past August 28. Minebea's CEO, Yoshihisa Kainuma, had previously indicated that his company could win if Yageo's potential hike was within 200 yen to 300 yen [2].

The acquisition of Shibaura by Yageo has been seen by investors as a test of Japan's openness to unsolicited takeovers. Yageo's new price values Shibaura at 101 billion yen ($684.5 million), up from the previously offered 94 billion yen. Yageo also extended its offer period to September 4 from August 28 [2].

The discussions with the Japanese Ministry of Finance come as Japan faces rising interest rates and increased debt-servicing costs. The Japanese finance ministry is planning to request a record $220 billion for debt-servicing costs in the next financial year's budget, highlighting the country's struggle to rein in spending [1].

References:
[1] https://www.reuters.com/markets/asia/japan-ministry-request-record-sum-debt-servicing-costs-draft-shows-2025-08-26/
[2] https://www.reuters.com/markets/emerging/taiwans-yageo-sweetens-offer-japans-shibaura-security-clearance-key-2025-08-21/