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Renesas agrees to buy Dialog Semi for US$5.9 billion in cash

Renesas agrees to buy Dialog Semi for US$5.9 billion in cash

FILE PHOTO: Dialog semiconductor logo is pictured at a company building in Germering near Munich, Germany August 15, 2016. REUTERS/Michaela Rehle

BERLIN: Renesas Electronics Corp and Dialog Semiconductor said on Monday they had agreed for the Japanese chipmaker to buy the Frankfurt-listed chip designer for 4.9 billion euros (US$5.90 billion) in cash.

Renesas, one of the world's biggest auto chip makers, has offered 67.50 euros a share for the Apple Inc supplier, representing a 20per cent premium to Friday's closing price and a 52per cent premium to a weighted three-month average.

Dialog said in a statement that the agreed deal represented a "compelling opportunity" for its shareholders. Its board of directors would unanimously recommend the offer.

Dialog shares were 21per cent higher in early Frankfurt trading at 68 euros, a slight premium to the price of the agreed deal.

(US$1 = 0.8306 euros)

(Reporting by Douglas Busvine; Editing by Maria Sheahan)

Source: Reuters

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