Yageo announced on June 9 that, in connection with the pending acquisition of KEMET Corporation by Yageo, the parties received the final regulatory approval that is a condition to closing of such transaction from the Investment Commission, Ministry of Economic Affairs.

The parties expect to be in a position to consummate the merger in the coming days, subject to the satisfaction of the remaining closing conditions set forth in the merger agreement.

After the acquisition of KEMET, Yageo will become the third largest passive component manufacturer in the world, and will occupy the first position in the market share of chip resistors and tantalum capacitors, and the third in the market share of MLCC.

Pierre Chen, chairman of Yageo, pointed out that KEMET will be an important growth driver for Yageo in the next 5-10 years. As for the reason for the acquisition of KEMET, Pierre said that KEMET's tantalum capacitor market share ranks first in the world, and its profitability of tantalum capacitors is comparable to that of Yageo's entire company, which is one of the reasons for the acquisition.

Pierre Chen stated that Yageo’s goal is to enter high-end fields such as automotive and industrial. In addition to its own growth, M&A is also the key to Yageo’s growth. Pierre Chen emphasized that the acquisition of KEMET will be the key for Yageo to enter the high-end market.

The acquisition is expected to be completed in the third quarter of 2020. After the transaction is completed, KEMET will become a wholly-owned subsidiary of Yageo.