January 29, 2018 / 9:27 PM / 7 months ago

Japan's Renesas dismisses report on talks to buy Maxim

TOKYO (Reuters) - Renesas Electronics Corp dismissed a media report that said the Japanese automotive chip maker was in talks to acquire U.S. chipmaker Maxim Integrated Products Inc.

The Maxim Integrated logo is seen in this illustration photo January 30, 2018. REUTERS/Thomas White/Illustration

Earlier, CNBC reported that discussions were ongoing for a deal that could be valued at up to $20 billion, citing sources close to the matter. The report, however, also said that the deal was not imminent and may not happen.(cnb.cx/2nrkjIe)

“There was a news report ... concerning discussions about an acquisition, but this report was not issued by us and there is no truth to it,” Renesas said in a statement on Tuesday.

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Maxim was not immediately available for comment.

Renesas has a market capitalization of about $20 billion, while Maxim is valued at about $19 billion, according to Thomson Reuters data.

Shares in the San Jose, California-based company ended up 12.3 percent at $66.27 on the Nasdaq on Monday after the report.

In 2016, Renesas beat rival suitor Maxim in a deal to buy U.S. chipmaker Intersil Corp for $3.2 billion, an all-cash deal that bolstered the Japanese group’s efforts to refocus the company around automotive chips.

Renesas, created from the semiconductor units of several Japanese companies, has amassed a significant war chest since a state fund and key clients bailed it out after the Fukushima earthquake in 2011.

Reporting by Munsif Vengattil and Diptendu Lahiri in BENGALURU, Kentaro Hamada in TOKYO; Editing by Himani Sarkar

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