CG Power and Industrial Solutions Ltd. on Wednesday said it has received approval from the Committee on Foreign Investment in the United States for a $36 million deal to acquire the Radio Frequency (RF) components business of Japan-based Renesas Electronics Corp.
"The regulatory approval from the Committee on Foreign Investment in the United States has been obtained on 10th March, 2025 and received by us on 11th March, 2025," a regulatory filing said.
Earlier in October, CG Power inked a pact to acquire the Radio Frequency (RF) components business of Renesas Electronics for a cash consideration of $36 million.
An asset purchase agreement was executed on Oct. 4, 2024 between CG and Renesas Electronics America Inc, a subsidiary of Renesas, and other affiliated entities of Renesas, that have assets in the RF components business.
As per the pact, Murugappa Group firm CG Power will acquire Intellectual Property (IP), and tangible assets and select transferring employees across various functions such as semiconductor design, marketing, applications, etc. related to the RF components business of Renesas.
The proposed acquisition will enable the company to enter the semiconductor design business.
CG Power has established a subsidiary, CG Semi Pvt., for Outsourced Semiconductor Assembly and Test (OSAT) business. CG and Renesas Electronics America Inc. are joint venture partners in CG Semi Pvt.
The said business will be acquired by entities that will be established by CG, post completion of customary conditions and applicable regulatory approvals, the company had said.
The acquisition is expected to be completed in about six months, subject to necessary approvals, the company had said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
