Mitsubishi Contemplates Bid For Fujitsu's Chip Unit Shinko Electric: Report

Mitsubishi Corp. MSBHF is reportedly considering bidding for Fujitsu Ltd.'s FJTSF chip packaging unit Shinko Electric Industries.

Other bidders include Apollo Global Management, Inc. APO, KKR & Co. Inc. KKR, Bain Capital, and government-backed Japan Investment Corp, according to a news report by Reuters, citing two sources familiar with the matter. 

Earlier, Fujitsu put its 50% stake in Shinko Electric, worth around $2.6 billion at current market prices, on sale, the report read.

Mitsubishi, owned 8.3% by Berkshire Hathaway Inc. (NYSE: BRK-A), has set up a team to explore the possibility of entering the so-called back-end manufacturing process, the report added.

The sale of Shinko, which is a major supplier to chip companies such as Intel Corporation INTC and Advanced Micro Devices, Inc.AMD, may face national economic security issues, the report noted.

Mitsubishi reportedly intends to make a joint bid with one of the potential buyers. However, talks are early, and Mitsubishi has "not decided on a partner," Reuters noted. 

A Fujitsu spokesperson told Reuters: "It is true we are considering various options to maximise the value of the independent business, but nothing has been decided at this time."

Nevertheless, there is no guarantee a deal would go through, and it was also not clear if Mitsubishi had engaged banks to advise on the deal, Reuters noted.