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Panasonic is selling semiconductor business to Nuvoton
Posted on Friday, 29 November 2019 07:23
Nuvoton Technology has agreed to acquire the chip business of Panasonic operated by Panasonic Semiconductor Solutions in an all-cash transaction.
Neither company gave financial details on the deal; however, Reuters reported that the purchase is worth USD 250.00 million.
The agreement has already been given the green light from both boards, remains subject to regulatory approvals in relevant jurisdictions and is expected to complete by June 2020.
Panasonic Semiconductor is a leading global supplier of chips and devices that focus on sensing technologies such as image sensors and digital signal processors.
Nuvoton said the acquisition will increase its presence in the global semiconductor sector and put it in a better position to capture secular growth trends in the electrisation and automation of automotive and industrial fields.
The sale is part of Panasonic’s plan to cut fixed costs by JPY 100.00 billion (USD 915.16 million) by the end of March 2022 by consolidating production sites and overhauling loss-making businesses, Reuters observed.
Headquartered in Japan, the firm is a multinational electronics company with its foot in a number of different sectors, including home appliances, automotive, connected and industrial services and construction.
Earlier this month, Panasonic sold a 20.8 per cent stake in PUX, an information processing type computer software and platform developer, for JPY 80.00 million.
Shares in the business rose 2.8 per cent to JPY 1,009 at 15:00 today, giving the group a market capitalisation of JPY 2,480 billion.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 2,401 deals targeting semiconductor and other electronic component manufacturers announced worldwide since the start of 2019.
In the largest of these, Infineon Technologies has agreed to buy Cypress Semiconductor for USD 10.08 billion.
Nvidia, Toshiba Memory Holdings and Micron Semiconductor Taiwan, among others, have also been targeted in the year to date.
© Zephus Ltd