MinebeaMitsumi Inc. (Tokyo Stock Exchange: 6479, hereinafter “MinebeaMitsumi”), a leading manufacturer of precision components, has announced a tender offer (TOB) for Shibaura Electronics Co., Ltd. (Tokyo Stock Exchange: 6957, hereinafter “Shibaura Electronics”), a global manufacturer of temperature sensors. Shibaura Electronics has rejected a hostile acquisition proposal from Taiwanese electronic components maker YAGEO Corporation (Taiwan Stock Exchange: 2327, hereinafter “YAGEO”) and expressed its support for MinebeaMitsumi’s acquisition plan. If the acquisition is successful, Shibaura Electronics will become a wholly owned subsidiary of MinebeaMitsumi and will be delisted from the stock exchange.
This acquisition drama not only represents an effort by a Japanese company to protect domestic technology but also forms part of a broader growth strategy aimed at global competition. As attention turns to whether YAGEO will raise its offer price, the situation surrounding Shibaura Electronics underscores the intensifying competition in the sensor market and its growing importance.
Purpose of M&A
MinebeaMitsumi, a major player in precision components with a focus on bearings, motors, and sensors, achieved group sales of ¥1.4 trillion in 2024. As the company expands globally, strengthening partnerships with firms that possess advanced sensing technology has become a key strategic goal.
The objectives of this M&A can be summarized as follows:
• Joint development of innovative, high value-added products
• Global expansion utilizing MinebeaMitsumi’s existing sales channels
• Efficiency improvements in manufacturing and sales operations
Shibaura Electronics holds the world’s largest market share in thermistor-type temperature sensors, and the expectation is that its advanced technologies can be retained within Japan while maximizing synergy with MinebeaMitsumi’s product portfolio. Shibaura Electronics also judged MinebeaMitsumi, which focuses on custom products—a key strength of Shibaura Electronics—to be a more suitable partner than YAGEO, which emphasizes general-purpose products.
Acquisition Terms
Offer Price: ¥4,500 per share
Planned Number of Shares to be Acquired: 96% of issued shares (15,015,111 shares)
Minimum Success Threshold: 50.01% (7,539,900 shares)
Total Acquisition Amount: Up to ¥67.5 billion
Post-TOB: Shibaura Electronics to be delisted
Funding: Investment fund Advantage Partners will support part of the acquisition financing and plans to acquire a 5% stake
Schedule
February 5, 2025: YAGEO announces TOB to begin on May 7
April 10, 2025: MinebeaMitsumi announces TOB
April 23, 2025: MinebeaMitsumi TOB scheduled to begin
May 7, 2025: YAGEO TOB scheduled to begin
