CG Power and Industrial Solutions Limited (CG), a leader in the Electrical Engineering Industry, and part of the Murugappa Group, today announced that the Company has entered into a definitive agreement for the acquisition of the Radio Frequency (RF) components business of Renesas Electronics Corporation (Renesas), a premier supplier of advanced semiconductor solutions. Towards this, an asset purchase agreement for the business was executed on 4th October 2024 between CG Power and Industrial Solutions Limited and Renesas Electronics America Inc., a subsidiary of Renesas, and other affiliated entities of Renesas, that have assets in the RF components business. The said business will be acquired by entities that will be established by CG, post completion of customary conditions and applicable regulatory approvals.

Through this transaction, CG will acquire Intellectual Property (IP), tangible assets and select transferring employees across various functions such as semiconductor design, marketing, applications, etc. related to the RF components business.

Commenting on this acquisition, Mr. Vellayan Subbiah, Chairman of CG Power and Industrial Solutions Limited, said, “A significant number of semiconductor designers globally are Indians. Through this acquisition, we aim to enhance India’s presence in the semiconductor design & development space, considered to be a high-growth and high-profitability sector.”

Mr. Davin Lee, Senior Vice President and General Manager of the Analog and Connectivity Group at Renesas, added, “This agreement with CG will provide the opportunity for our RF team to expand. We are pleased that CG will deliver outstanding RF technology and world-class support to our customers, and we will support a smooth transition to facilitate the same. For Renesas, this move sharpens our focus on the strategic segment of our analog and connectivity business, enabling us to further scale to better serve customer demand.”

Shares of CG Power and Industrial Solutions Limited was last trading in BSE at Rs. 718.80 as compared to the previous close of Rs. 737.90. The total number of shares traded during the day was 120053 in over 5163 trades.

The stock hit an intraday high of Rs. 742.45 and intraday low of 715.60. The net turnover during the day was Rs. 87276810.00.

Source : Equity Bulls

Keywords

CGPowerandIndustrialSolutions
INE067A01029
Agreement
Acquisition
RadioFrequencyComponentsBusiness
RenesasElectronicsCorporation