Denso drops Rohm takeover plan

This leaves the merger of the power semiconductor businesses of Rohm, Toshiba and Mitsubishi Electric, which was proposed in March, as likely to go ahead.

The three companies have continued their talks since the Denso bid and Rohm is said to have  concluded that the synergies which would be the benefit of the three-way merger would not materialise if Rohm became a subsidiary of Denso.

It was thought that a takeover would also affect business relationships with Denso’s competitors. Denso  makes power semiconductors used in motor controls and power conversion and analogue devices for sensors.

In May last year Denso agreed  a semiconductor partnership with Rohm. Denso currently holds a 5% stake in Rohm.

The Japanese power semiconductor manufacturers are all struggling to compete with Chinese producers.