Yageo Secures Majority Stake in Japan's Shibaura in Rare $740M Foreign Takeover

Taiwan's Yageo Corporation has successfully acquired a majority stake in Japan's Shibaura Electronics through a $740 million unsolicited bid, securing about 87 percent of the company's shares and surpassing the 50.01 percent threshold needed for control. The tender offer, which began in May and included multiple increases in the bid price, was extended to October 20, 2025, to comply with Japanese regulatory requirements. This acquisition marks a significant milestone for Yageo's global expansion and reflects its long-term commitment to the Japanese market, particularly in the electronics sector where Shibaura is known for its thermistors. The deal underwent a rigorous seven-month review under Japan's Foreign Exchange and Foreign Trade Act, as Shibaura operates in strategic industries related to defense and advanced technology, but was ultimately approved after Yageo agreed to undisclosed government conditions. Yageo's successful takeover highlights a rare instance of foreign ownership in Japan's sensitive sectors, potentially setting a precedent for future cross-border mergers and acquisitions amid tightening global investment screening policies. This development demonstrates Japan's careful balancing act between maintaining national security and welcoming foreign investment in critical industries.