Major Japanese auto parts maker Denso Corp said Tuesday its board has decided to withdraw its buyout proposal for Rohm Co, having failed to secure the semiconductor and electronic parts maker’s support.
“Even if we continued discussions any further, we could not envision a scenario at this stage that would enhance the value of both companies,” Denso President Shinnosuke Hayashi said at a press conference in Nagoya regarding the company’s earnings for the year ended March 2026.
Hayashi said the talks had deepened Denso’s understanding with Rohm in technology development and manufacturing.
“We will seek to enhance our value by further advancing our current relationship,” he said.
Denso in February proposed acquiring Rohm, including the possibility of buying all of its outstanding shares, as part of efforts to strengthen its semiconductor business.
The withdrawal suggests that the realignment of the power semiconductor sector will likely focus on discussions about integrating Rohm’s, Mitsubishi Electric Corp’s, and Toshiba Corp’s businesses. Power chips are widely used for power control in electric vehicles and industrial devices.
Rohm had set up a special committee comprising outside directors and others to examine Denso’s proposal, while announcing on March 27 that it had started talks with Mitsubishi Electric and Toshiba on business integration.
© KYODO
