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Denso to withdraw proposal to take over Rohm, Nikkei says

Mia Glass / Bloomberg
Mia Glass / Bloomberg • 1 min read
Denso to withdraw proposal to take over Rohm, Nikkei says
Denso was unable to get Rohm’s support for the acquisition, Nikkei reported, without saying where it got the information. (Photo by Bloomberg)
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(April 25): Denso Corp is set to withdraw its proposal to take over semiconductor maker Rohm Co, as the two sides were unable to see eye to eye on an offer, Nikkei reported.

Denso was unable to get Rohm’s support for the acquisition, the newspaper reported, without saying where it got the information. Rohm may have had concerns about becoming overly reliant on automotive chips, or that its existing relationships with other auto parts manufacturers would be impacted, Nikkei said.

Rohm’s shares surged last month after the company said it received an acquisition proposal from auto parts supplier Denso. The Japanese chip parts maker had set up a committee to examine the bid.

Separately, Toshiba Corp has begun discussions to merge its power chip operations with those of Rohm and Mitsubishi Electric Corp, a sign of consolidation that may affect other parts of Japan’s fragmented industrial supply chain.

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