TOKYO (Reuters) – Japanese auto parts supplier Denso Corp (6902.T) said on Friday it has agreed to acquire an additional 4.5 percent stake in chip maker Renesas Electronics Corp (6723.T), as carmakers accelerate development of self-driving vehicles and other technologies.
Denso is acquiring the stake from Innovation Network Corp of Japan (INCJ), a state-backed fund that owns 50.1 percent in the chip maker, INCJ said in a statement.
The terms of the deal were not disclosed but the transaction is worth about 85 billion yen ($796.9 million) based on the current share price.
As a result of the deal, Denso’s stake in Renesas will rise to 5 percent.
In a statement, Denso said it is “essential to further enhance collaboration with semiconductor manufacturers that have profound experience and expertise” to develop vehicle control systems in automated driving and other new fields.
Reporting by Taiga Uranaka; Editing by Stephen Coates