BERLIN (AFP) – Japanese electronics company Renesas will acquire its German-British competitor Dialog, a semiconductor specialist and Apple supplier, in a EUR4.9-billion (USD5.9-billion) deal announced by the two companies yesterday.
According to a Dialog statement, Renesas will pay EUR67.50 for each Dialog share between now and the end of the year, approximately 20 per cent more than the closing price on Friday.
The two groups, which have collaborated for a number of years, both produce chips for the automobile industry, which has been hit by a semiconductor shortage.
Major car producers such as Ford, General Motors and Volkswagen have all had to trim or halt production due to the semiconductor crunch, which stems in part from outsized chip demand for game consoles and other consumer electronics during the coronavirus pandemic.
“Bringing together Renesas and Dialog will extend the combined group’s reach to a broader customer base and open up additional growth potential,” the two companies said in the statement.
The acquisition still needs to be approved by shareholders as well as competition authorities in various countries.