Apple in Talks to Acquire 55% Stake in Renesas SP Drivers for $479M

Apple in Talks to Acquire 55% Stake in Renesas SP Drivers for $479M

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Apple Incorporated is in close talks to acquire 55% stakes in the Japanese chipmaker Renesas SP Drivers. It will be shelling out $479 million for the company which will be a crucial asset in its arsenal.

The chips that Renesas manufactures /4/boost the image clarity and battery longevity of Apple’s smart phones. Since, Apple’s position in the market has receded of late it wants to gain a foothold via the services of Renesas. 

The acquisition of Renesas for a solid $479 million will allow Apple to utilize its in-house facilities instead of relying on outside aid. Renesas is a joint venture that has Sharp and Powerchip as its shareholders. 

Apple wants to own at least 55% of the shares in the company. The Japanese company is in a high growth phase. The employees of the company will remain in their fixed careers despite the pending takeover though. And the merger will take place in the hot months of the summer season this year. 

However, Renesas has just issued a statement regarding the media  reports of its SP Drivers acquisition. Renesas has not totally denied about the deal. However, the Japanese chipmaker is not ready to confirm these reports at this time.

Renesas states, “There were media reports regarding Renesas SP Drivers, which were published in certain media. The reports were not based on announcement of Renesas and Renesas SP Drivers’ announcement and they cannot be confirmed or regarded as fact at this time.”

Renesas produces drivers and controllers for Liquid Crystal Displays. It churns out about a third of the global LCDs. The chips it creates are intricate and complex. And they are what Apple is after. 

Sharp and Powerchip own 25% and 20% of this Tokyo-based company respectively. Sharp /4/be willing to sell off its ownership rights to Apple. 

Apple is going to be taking a giant step with this purchase. Since the good old days of the late Steve Jobs, this will be the first occasion when such a large sum of money will have been spent on an external entity by Apple Incorporated. It /4/appear to be the art of the deal which the crunchy fruit company excels in. 

With Renesas under its belt, there will be no force left in the arena to hold Apple back from meteoric progress. It will have gotten what it wanted all along and its smart phones will reach the #1 spot once again in no time.  

Source: Nikkei

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