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Electronics Production |

Kaga Electronics to acquire 70% of Fujitsu Electronics

Kaga Electronics and Fujitsu Semiconductor Limited (FSL) have entered into a definitive agreement whereby Kaga will acquire 70% of the shares in Fujitsu Electronics Inc. (FEI) from FSL.

Kaga is also planning to acquire the remaining 30% shares held by FSL by the end of 2021. The transfer of 70% shares, which takes place in Phase 1 is expected to close in January 2019, subject to regulatory approval from authorities and other closing conditions, a press release reads. In the release the companies explains that the business environment surrounding the electronics trading industry, where many players are competing each other, has been changing more dramatically in recent years on the back of accelerated consolidation and integration of suppliers including semiconductor/device manufacturers. The companies believes that the competition between electronics trading companies will intensify further in the future as their policy changes concerning distribution agents, a growing trend that customers shift their assembly of finished products overseas, changes in demand and supply and also in prices in both domestic and overseas markets, and shortening product lifecycles as a result of ongoing technological innovations. Under these circumstances, the conclusion that the optimal solution to maximise the value for all stakeholders, including customers and partners, is to integrate the businesses of Kaga Electronics and FEI was reached. Kaga Electronics has previously stated that it will focus on increasing sales of electronic devices to existing major customers and expanding the EMS business, primarily in overseas markets. The acquisition of FEI’s shares is part of the efforts to fulfill this strategies.

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March 15 2024 2:25 pm V22.4.5-1
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