An investment fund controlled by Japan's government has agreed to rescue Renesas Electronics by buying a majority stake in the loss-making chipmaker for about JPY 180 billion, people familiar with the deal told the Financial Times. The bailout would thwart a rival bid for Renesas by private equity group KKR and is backed by a number of top Japanese manufacturing companies, including Toyota and Panasonic. The companies, eight in total, plan to add a combined JPY 10 billion in financing to the rescue in return for small stakes in Renesas, which they consider to be a crucial supplier. The deal is expected to be announced next week pending approval by the participating companies' boards. None of the companies involved would comment publicly.
