Taiwan-based Yageo has secured approval from Japanese foreign direct investment (FDI) authorities to acquire Shibaura Electronics, following an extensive national security review. The clearance allows Yageo to move forward with its tender offer bid (TOB), advancing the US$740 million acquisition into its final stages.
On September 2, Yageo announced that Japan's Ministry of Economy, Trade, and Industry (METI) and other relevant regulatory bodies completed their examination under the Foreign Exchange and Foreign Trade Act. The review, which assessed the transaction's impact on Japan's national and economic security, resulted in approval for the deal. This marks the last major regulatory hurdle before finalizing the acquisition. With approval obtained, the original TOB deadline of September 10 will be extended to September 18 in line with regulatory requirements.
According to Reuters and Nikkei, the deal had undergone stringent scrutiny primarily due to Shibaura Electronics' thermistor sensor business, identified as a critical technology under Japan's national security framework. Reports indicated that the approval removes the main barrier facing Yageo in its bid.
Yageo outbid domestic competitor Minebea Mitsumi by offering JPY7,130 (approx. US$48.39) per share, exceeding Minebea Mitsumi's JPY6,200 per share proposal. Minebea Mitsumi had previously stepped in as a white knight to prevent Yageo's unsolicited takeover but withdrew after deciding not to escalate its offer further.
Yageo's approval followed agreement to conditions imposed by Japanese authorities, although details of those conditions were not disclosed. The review process, initiated in February 2025, spanned several months, including two extensions and resubmissions, reflecting Japan's intensified efforts to safeguard strategic industries amid evolving global security concerns.
Preventing sensitive technology from being transferred to third parties was reported to be a key element of the conditions set by the government. Two government sources noted these safeguards are common in foreign acquisitions in sectors deemed vital for national security.
Yageo highlighted that its TOB price carried a significant premium relative to competitors and emphasized that the approval eliminates prior uncertainties surrounding the deal's completion and feasibility. The transaction is now expected to proceed toward finalization within the extended timeline.
Article edited by Jack Wu
