Yageo has extended the deadline for its tender offer to acquire Japan's Shibaura Electronics for a fifth time, citing ongoing regulatory review under Japan's Foreign Exchange and Foreign Trade Act. The Taiwan-based passive components giant now expects to complete the share acquisition by August 1, 2025, according to a company statement released on July 15.
The latest delay comes just days before a planned high-level meeting between the two companies in Taipei on July 17–18, marking their third round of talks—and the first to take place outside Japan. The discussions are expected to focus on potential synergies and long-term strategic alignment, with both sides aiming for what Yageo described as a "more constructive and in-depth dialogue."
Yageo has repeatedly extended its tender offer timeline since it was first launched over two months ago, adjusting deadlines to comply with regulatory requirements in Japan. The offer period had been extended to July 15, but on that date, the company announced a fifth extension, citing ongoing approval processes with Japanese authorities.
Regulatory uncertainty clouds deal progress
Shibaura is a globally recognized manufacturer of negative temperature coefficient (NTC) thermistors, and Yageo views the acquisition as a strategic step to enhance its footprint in high-performance thermal sensing components.
In its most recent update, Yageo confirmed it has formally responded to Shibaura's fifth supplemental inquiry letter ahead of their upcoming meeting. The questions centered on the progress of regulatory review, Yageo's expectations for the approval timeline, and whether the company has any intention to withdraw the offer.
Yageo clarified that under Japanese law, it is prohibited from disclosing specific details of the regulatory process to third parties. However, the company said it remains optimistic about securing approval and reiterated its commitment to the deal.
No plan to withdraw, despite extended timeline
The company stated that the previous extension of the offer period to July 15 was intended to prevent unnecessary prolongation and to serve the best interests of shareholders. However, due to the ongoing regulatory process, the deadline has been further extended to August 1.
In response to concerns about a possible withdrawal of the acquisition, Yageo clarified that although its public offer filing on May 9 included provisions for termination under certain conditions, it currently has no plans to withdraw the transaction.
The firm reiterated its full commitment to completing the transaction, highlighting the persistence and determination of Chairman Pierre Chen, who has championed the cross-border acquisition as part of Yageo's global expansion strategy.
With regulatory decisions still pending and strategic talks in Taipei approaching, the outcome of the Yageo–Shibaura deal remains uncertain. Investors and industry analysts on both sides of the East China Sea are closely monitoring the situation.
Article edited by Jerry Chen
