Japan's Murata eyeing large-scale M&A to drive growth, CEO says

By Ritsuko Shimizu

KYOTO, Japan (Reuters) - Japan's Murata Manufacturing is considering deals of more than 100 billion yen ($665 million) to drive growth, the smartphone component supplier's CEO said on Thursday.

Murata is looking at areas such as inductors and sensors, and overseas targets are also a possibility as the company seeks to boost market share and expand in new markets, Norio Nakajima told Reuters in an interview at the company's headquarters in Kyoto.

"We want to significantly scale up in the next three years," he said.

In its business plan for the three years to March 2028, Murata is targeting strategic investment including mergers and acquisitions of 220 billion yen.

The company has fallen short of its strategic investment target in its medium-term plan ending in the current financial year.

Murata is also planning capital spending of 680 billion yen over the next three years to expand capacity at factories in Japan and Thailand.

It also said this week that it will rent a factory in India to prepare for future manufacturing there.

($1 = 150.2600 yen)

(Reporting by Ritsuko Shimizu; Writing by Sam Nussey; Editing by Chang-Ran Kim and Edwina Gibbs)

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