Taiwanese electronics manufacturer Yageo Corp has raised its tender offer for Japanese thermistor sensor maker Shibaura Electronics to 7,130 yen per share, representing a 7.5% increase from its previous bid. The company has also extended its offer deadline to September 8, signaling its determination to secure the acquisition despite resistance.
The Escalating Contest
Yageo, the world’s largest producer of chip resistors, is locked in a takeover battle with Japanese components maker Minebea Mitsumi. The contest began when Shibaura, seeking to fend off Yageo’s unsolicited approach, invited Minebea Mitsumi to act as a “white knight” investor.
Minebea initially matched Yageo’s 6,200 yen per share bid last week, forcing Yageo to respond with a revised offer of 6,635 yen. Now, with its latest increase to 7,130 yen, Yageo is making clear that it sees strategic value in integrating Shibaura into its operations.
Strategic Rationale
Yageo has emphasized the potential synergies between the two companies, pointing to opportunities in sensor technologies and broader components manufacturing. Shibaura is a significant player in thermistor sensors, which are essential for automotive, industrial, and electronics applications—areas aligned with Yageo’s push for diversification beyond resistors.
Minebea Mitsumi, however, has signaled that it will not raise its offer beyond 6,200 yen per share, nor extend its bid deadline past August 28. In a statement, the company said the price is “reasonable and the maximum possible,” suggesting it will not escalate further.
Outlook
The competing bids underscore a broader theme in the electronics sector: consolidation to secure supply chains and diversify product portfolios amid growing global demand for sensors and advanced components.
With Yageo’s latest move, Shibaura’s shareholders face a choice between Minebea’s steady but capped bid and Yageo’s more aggressive, higher-priced proposal. The outcome will not only decide Shibaura’s future ownership but may also reshape the competitive dynamics in the components industry across Asia.
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