• Agreement expected as early as this month, Nikkei reports
  • Renesas says U.S. chipmaker among options being considered

Japan’s Renesas Electronics Corp. rose in Tokyo trading after a report it was in final talks to acquire U.S. chipmaker Intersil Corp. for as much as $3 billion.

The shares in the Japanese chip company climbed as much as 4.2 percent to 640 yen as of 9:08 a.m. Monday. Renesas intends to offer a premium to investors of Milpitas, California-based Intersil and an agreement could be reached as early as this month, Nikkei Asian Review reporting without providing any source. Intersil’s stock has climbed 23 percent this year, and its market value is currently at $2.1 billion.

Renesas Chief Executive Officer Bunsei Kure said after taking office in June that he would look overseas for research and development. Renesas has begun to relocate some development to outside Japan, employing about 600 researchers in Vietnam and 300 in China, as well as some in Malaysia, Kure said at the time.

Renesas said in a statement after Sunday’s report that the acquisition of a U.S. chipmaker is among several options the company is considering to expand, but that it had made no final decisions. Renesas added that it is not the source of the Nikkei report.

“The profit-boosting effect from this acquisition will be insignificant,” Takeo Miyamoto, an analyst at Mitsubishi UFJ Morgan Stanley Securities, wrote in a report Monday. “Depending on how they manage it, there is a risk of Renesas booking a large impairment on the deal.”

"Our policy is not to comment on rumors or speculation," Intersil spokeswoman Shannon Pleasant wrote in an e-mail to Bloomberg.

Renesas was formed in 2010 when government-backed investment fund Innovation Network Corp. of Japan brought together the struggling chip operations of Mitsubishi Electric Corp., Hitachi Ltd. and NEC Corp. INCJ controls about 69 percent of the company, according to data compiled by Bloomberg.

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