• Kyodo


Top car parts maker Denso Corp. is considering a business and capital tie-up with ailing electronics maker Sharp Corp. to reduce development and investment costs, a Denso executive said Friday.

Denso, affiliated with Toyota Motor Corp., could invest several billion yen if it decides on the capital alliance, a move that would help Sharp strengthen its weakened financial base and support its restructuring efforts.

Electric tool maker Makita Corp., which has basically agreed with Sharp on a tie-up in the robot business, is also mulling investment in the company, Makita sources said.

Denso, along with companies including Toyota and Nissan Motor Co., has decided to take part in investing in Renesas Electronics Corp. to rebuild the struggling chip-maker.

“If we decide to collaborate, investing makes sense,” said the Denso executive, who did not want to be named.

“We’d like to consider the matter positively if there is an opportunity,” the executive said, adding that it has been difficult for the car parts maker to meet all of its technological needs in development.

Sharp is considering raising up to ¥10 billion by selling shares to housing equipment maker Lixil Group Corp. via issuance of new shares, but is believed to require more funds to improve its balance sheet.

Sources said Thursday that Sharp is considering raising ¥100 billion by issuing new shares to strengthen its financial base weakened by massive losses.

It may attempt to raise around ¥90 billion through a public stock offering by the end of September, the sources said.

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