Japanese Group May Challenge Foreign Buyout of Supplier

A Japanese government fund and several domestic companies may band together to block New York City-based private equity fund KKR & Co. LP from buying a controlling stake in chipmaker Renesas Electronics Corp., according to the Japanese press.

The group, which is led by Innovation Network Corp. of Japan, reportedly is considering investing more than 100 billion yen ($1.3 billion) in a counter-bid.

Participants such as Canon, Denso, Honda, Nissan, Toyota and Panasonic want to ensure a stable supply of microcontroller chips, The Nikkei reports. The chips are used by the auto industry in everything from engine controllers and navigation systems to instrument panels and power windows.