Minebea Mitsumi has increased its tender offer bid (TOB) for shares of Shibaura Electronics to JPY6,200 (US$41.99) per share, matching the bid made by Taiwanese company Yageo Corporation. The TOB period has been extended to August 28, 2025.
Deal valuation reaches record high
According to Reuters and Nikkei, the renewed offer values the deal at about JPY93 billion, marking Minebea Mitsumi's largest acquisition to date. The company cited expected synergy effects with Shibaura Electronics as justification for the higher offer. Investment fund Advantage Partners plans to join Minebea Mitsumi in providing part of the acquisition funding.
White knight vs hostile takeover
Minebea Mitsumi's approach frames itself as a friendly "white knight" acquirer, in contrast to Yageo's unsolicited takeover attempt. Initially, Minebea Mitsumi's offer stood at JPY5,500 per share, while Yageo began with JPY6,200 per share. Both sides have extended their respective TOB deadlines multiple times, resulting in an unusually lengthy process that has spanned over 60 business days since May 2025.
Regulatory hurdles slow Yageo's progress
A significant delay factor is Japan's Foreign Exchange and Foreign Trade Act regulatory review of Yageo's acquisition and its potential risks related to national security technology leakage. Yageo submitted initial filings in February 2025 but withdrew and resubmitted applications amid regulatory concerns. The waiting period for approval has been repeatedly extended, creating uncertainty about Yageo's ability to complete the acquisition.
This regulatory uncertainty complicates decisions for Shibaura Electronics shareholders regarding which bid to accept. Minebea Mitsumi has argued that the prolonged review diminishes Yageo's chances of closing the deal, offering shareholders a prompt exit option with its raised bid.
Strategic engagement continues
Yageo continues to pursue engagement with Shibaura Electronics. On August 14, 2025, Yageo announced a recent executive meeting between the two companies in Taipei and revealed plans for Shibaura Electronics' management to visit Yageo's manufacturing facilities in Kaohsiung on August 19, 2025. This visit aims to foster operational exchanges and strategic alignment. Yageo is also scheduled to visit Shibaura Electronics' plant in Thailand on September 4, 2025, to gain further operational insights.
Article edited by Jerry Chen
