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Japan Investment Corp Confident in $6.4 Billion JSR Corp Buyout Despite Antitrust Delay

By  |  December 20, 2023

The State-backed Japan Investment Corp (JIC) has stated that it encounters no specific issues with China’s antitrust regulator regarding its planned $6.4 billion buyout of chip materials firm JSR Corp (4185.T), according to JIC Chief Executive Keisuke Yokoo. Speaking at a press conference on Wednesday, Yokoo reassured stakeholders about the progress of the deal despite a recent delay in the expected start of the tender offer.

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    JIC, overseen by the trade ministry, recently postponed the anticipated commencement of its tender offer for JSR from late December to late February at the earliest. The delay was attributed to a procedural setback in the Chinese antitrust review, prompting questions about potential regulatory hurdles.

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    “There aren’t any particular issues with the Chinese regulator,” Yokoo emphasized, addressing concerns about the status of the deal. He added, “We expect it to be done by March-end of the current financial year,” expressing confidence in the ultimate completion of the transaction.

    Yokoo further disclosed that JIC has long-term plans for the companies involved in its investment strategy. The fund envisions the eventual listing of JSR, as well as Shinko Electric Industries (6967.T), the chip-packaging unit of Fujitsu (6702.T). JIC has proposed a substantial acquisition of Shinko Electric Industries for 684.9 billion yen ($4.77 billion) as part of its broader investment portfolio.

    “We are working towards the goal of listing both JSR and Shinko Electric Industries within our 10-year investment horizon,” Yokoo stated. This signals JIC’s commitment not only to the successful acquisition of these key players in the semiconductor industry but also to their subsequent growth and public listing.

    The reassurances provided by JIC’s CEO come amid increased scrutiny on cross-border investments and antitrust regulations globally. As the fund navigates through regulatory processes, stakeholders will be closely monitoring the developments surrounding this high-profile deal that has implications for the semiconductor industry’s landscape in both Japan and China.

    Source: Reuters