Tax note prompts Renesas to end bid to buy Sequans
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Japan’s Renesas Electronics Corp. has decided to terminate its previously announced bid to buy Sequans Communications SA after receiving an adverse tax notification over the deal.
Renesas announced it has agreed to buy its French cellular IoT partner Sequans in a deal worth $249 million back in August 2023 (see Renesas to snap up Sequans for $249 million).
However, on February 15, 2024, Renesas received an adverse Japanese tax ruling under Article 66-6 of Act on Special Measures Concerning Taxations of Japan. As a result, Renesas has exercised its option to terminate an MOU, and the tender offer has also been terminated.
Renesas said the ending of the deal would not have a material impact on Renesas’ strategy of moving into higher growth industries and said it sees opportunities from cellular IoT technology and intends to build on the momentum through its partnership with Sequans.
It was not disclosed whether Renesas was required to pay a termination fee to Sequans.
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