The Innovation Network Corporation of Japan (INCJ), which is the majority owner in new forklift company UniCarriers Corp, will join a consortium of Japanese companies to invest in Renesas Electronics Corporation.

Toyota Motor Corporation, Nissan Motor Co Ltd, Keihin Corp, Denso Corp, Canon Inc, Nikon Corp, Panasonic Corporation and Yaskawa Electric Corporation make up the consortium that will come up with JPY150 billion (USD1.778 billion) in capital investment.

Subject to Renesas shareholder approval, INCJ and the consortium will underwrite an issue of new shares using the third-party allotment method, acquiring 75% of the total shares issued and outstanding in Renesas, of which the INCJ will acquire 69.2%.

The capital investment will provide Renesas with ample funding for growth. The INCJ has agreed to provide additional capital funding up to JPY50 billion (USD592 million).

The new funding injected into Renesas through the capital investment will be used for R&D and equipment to support product development in Renesas' core business area of micro control units (MCUs) for the automotive industry and in MCUs for general manufactured consumer products. It will also be used to support the production and sale of products fitted to automobiles and to facilitate mergers and acquisitions.

Last year, government-backed investment fund INCJ invested JPY 30 billion (USD 386.4 million) to take a 53.3% stake in UniCarriers Corp, the new company formed after the merger of Hitachi Construction's TCM Corp subsidiary and Nissan Forklift Co Ltd (Forkliftaction.com News #563).

The INCJ was established in July 2009 as a public-private partnership that provides financial, technological and management support for next-generation businesses. It has invested approximately JPY420 billion (USD4.978 billion) in a total of 31 projects.