Denso Retracts Proposal to Acquire Rohm

Nagoya, April 28 (Jiji Press)--Japanese auto parts maker Denso Corp. said Tuesday that it will withdraw its proposal to acquire domestic chipmaker Rohm Co.

Denso said in a statement that the company "has not obtained the support of Rohm's board of directors and special committee with respect to the proposal."

The focus of a reorganization of the country's power semiconductor industry is now expected to shift to talks involving Rohm, Toshiba Corp. and Mitsubishi Electric Corp. on a merger of their power chip operations.

"We can't envision a scenario anymore to improve the corporate value of both companies even if we continue discussions," Denso President and CEO Shinnosuke Hayashi said of Rohm at a press conference. He added that Denso would continue business cooperation and personnel exchanges with Rohm.

Denso, a supplier to Toyota Motor Corp., had offered to acquire Rohm in an effort to strengthen its semiconductor business as demand for electric vehicles is expand to grow. But Rohm, concerned that the deal will leave its operations focused too much on automotive chips, agreed to launch the talks with Toshiba and Mitsubishi.

[Copyright The Jiji Press, Ltd.]