August 1, 2008
Tdk to Buy Epcos of Germany Hot Stocks
TDK, the world's largest maker of magnetic heads used in disk drives, said that it would buy the German electronic parts manufacturer Epcos for $1.9 billion in cash, seeking growth outside its domestic Japanese market and in the area of industrial-use components.
TDK will offer to buy all the shares of Epcos at euro 17.85, a 29 percent premium to the closing price Wednesday and the biggest acquisition yet by a Japanese electronic parts maker. The deal requires regulatory approval in Germany.Upon completion of the deal, TDK would combine its components business with that of Epcos and set up a new company, tentatively called TDK EP Components KK. The plan is subject to approval by TDK shareholders, the company said.
Japanese electronics manufacturers once dominated in products like computers and portable music players, but now often lag rivals in the United States and other parts of Asia. For the advanced electronic parts that go into such products, however, Japanese companies like TDK and its chief rival, Kyocera, remain among the world's leaders.
Originally published by AP, Reuters, Bloomberg.
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