Renesas man

19 January 2016 By Quentin Webb

State money propping up ailing firms sounds like bad industrial policy. Yet Japan’s INCJ has overseen a real recovery since rescuing Renesas in 2013. Still, the $11 bln chipmaker faces strategic challenges. And INCJ’s likely next patient – electronics group Sharp – is worse off.

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A Japanese state-backed fund is preparing to sell at least half of chipmaker Renesas Electronics Corp, while parts maker Nidec Corp plans to bid for the assets, Reuters reported on Jan. 16, citing sources with direct knowledge of the matter.

The Innovation Network Corporation of Japan (INCJ), which owns about 70 percent of Renesas, plans to invite offers next month, said one source, while a second said Nidec was considered the most likely buyer for now.

INCJ led a 150 billion yen ($1.3 billion) rescue of Renesas in 2013. A lockup restricting the sale of its shares ended in September.

Previous reports have suggested other potential buyers could include Sony, Toyota and Infineon of Germany. On Dec. 25 Chief Executive Takao Endo quit after just six months in the job. The abrupt resignation came four days after Endo told Reuters he did not believe INCJ would sell a majority stake to a foreign buyer.

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