Hamamatsu Photonics of Japan restarted its acquisition of the Danish fiber laser giant

On May 2 this year, Japan's Hamamatsu Photonics' €205 million strategic acquisition of Danish fiber laser manufacturer NKT Photonics was rejected by the Danish authorities, and the acquisition was derailed.

Recently, Hamamatsu Photon in the official issued the latest statement, clearly stated that it will restart the acquisition of NKT Photonics plan.

What internal and external consultations have taken place?

Hamamatsu is understood to have resubmitted its bid in the past few days.

Although the company did not indicate what changes it had made for the deal based on the Danish government's considerations, the Japanese company said: "After the necessary internal and external consultations, we again submitted an application to the Danish Business Authority on July 20, 2023 to acquire NKT Photonics, which will become our subsidiary." Going forward, we will take action to secure ratification as soon as possible, including consultations with the relevant Danish authorities. If there is something that needs to be disclosed in the future, we will do so in a timely manner.

If the resubmitted deal is now approved in Denmark, NKT Photonics will become Hamamatsu's dedicated fiber and laser division. Akira Hiruma, CEO of Hamamatsu Photonics, said there is "huge growth potential" in the sector.

Under the terms of the original agreement, NKT Photonics will be responsible for fiber and laser development and manufacturing, the product portfolio will remain unchanged, and its company name and brand will remain.

The two companies also initially said there were no plans to make any changes to NKT Photonics' global facilities, and that all of NKT Photonics' more than 400 employees would move to Hamamatsu.

What was the background of the previous acquisition?

On June 24 last year, Japan's Hamamatsu Mitsuko officially announced the acquisition.

Under the initial agreement, the acquisition will make NKT Photonics, which focuses on high-stability fiber lasers and ultra-continuous light sources, part of the larger Hamamatsu business in Japan, supporting Hamamatsu's expansion of its laser applications business. NKT Photonics will be able to fully focus on its core business, cables, with the proceeds of the sale benefiting its broader strategy to support future manufacturing expansion.

Hamamatsu's bid was approved by German, US and UK authorities until May, when it was blocked by Denmark's minister of Industry, Commerce and Financial Affairs on national security grounds.

Shortly after the decision, acquired company NKT Photonics also spoke out. In early May, the company's chairman, Jens Peter Due Olsen, told an investor conference call: "This transaction is prohibited by the Danish authorities under the Danish Foreign Investment Act. Normally, approval is granted within 90 working days, but this ban was suddenly introduced after more than nine months of the approval process."

"We have not received any other reason than the so-called national security reasons, and we will not receive any other explanation." Also, we can't appeal or really understand the benefits of the ban because it's based on national security."

Olsen noted at the time that NKT Photonics could not speak directly to the Danish authorities about the decision, as the obligation to do so would fall on the buyer in this case. But he added at the time: "We still have a contract and we expect Hamamatsu to fulfil it. We know they are working hard to find a solution."

On May 8, local time, Hamamatsu issued a statement on its official website saying that in response to the Danish Business Authority's notification initiative, the group is considering further actions related to it.

Then, on June 27, in an official news release from NLM Photonics, NLM Photonics has acquired strategic partners - Hamamatsu Photonics of Japan and Tokyo Ohka Kogyo Co, a supplier of advanced electronic materials and a key semiconductor industry supplier. , Ltd. TOK's $1 million investment will be used to further commercialize the product, including partnerships with fabs and hyperscale data center operators.

This is the second investment Hamamatsu has initiated in NLM Photonics, and Hamamatsu says it will continue to support NLM Photonics in developing outstanding organic optoelectronics (EO) materials and is optimistic that they can contribute to the development of Hamamatsu's future products.

Brief summary

After twists and turns, this acquisition event finally ushered in further progress, and new actions again and again show the sincerity of the two sides to reach a deal. In the future, can Hamamatsu successfully take NKT Photonics under its banner? What kind of "butterfly effect" can be produced after the merger of the two businesses? We'll wait and see.

Source: OFweek