Japanese automotive chip maker Renesas denies any talks to buy Maxim

Japanese automotive chip maker Renesas Electronics Corp today denied a media report that it was in talks to buy US chipmaker Maxim Integrated Products Inc.

Earlier, CNBC, citing sources close to the matter, reported that both companies were in talks on a deal that could be valued at up to $20 billion. The report, however added that the transaction was not imminent and may not happen.

''There was a news report... concerning discussions about an acquisition, but this report was not issued by us and there is no truth to it,'' Renesas said in a statement.

Media reports in 2015 had reported that Maxim tried to sell itself and had held talks with Analog Devices and Texas Instruments, but both transactions fell apart over difference in valuation.

Renesas, which has made limited acquisitions, had outbid Maxim in 2016 to acquire semiconductor firm for $3.2 billion.

Renesas, which has a market cap of about $20 billion, generates nearly half of automotive semiconductors sales and is the world's second-biggest in that area behind Germany's Infineon Technologies AG.

Analysts opine that with $1.6 billion in long-term debt, Renesas may not be in a position to buy the whole of Maxim, which has a market cap $14 billion, but may prefer to buy one or two of its divisions.