Denso Might Invest $20 Million in Sharp image

Denso plans to invest 2 billion yen ($20 million) in Sharp Corp., according to an anonymous source.

Denso is drawn by the safety-related technologies offered by Sharp and might take a decision in the following month or two, according to the source. Denso and Sharp officials did not comment on the issue, but said that nothing has been decided yet.

Sharp is currently looking for investors to restore capital after sluggish demand for televisions brought the company two consecutive years of decline. Potential investors include Denso, Makita and Lixil, according to a report published by the Nikkei newspaper.

In May, two Denso executives pleaded guilty for conspiring to fix prices of electronic auto parts. The Denso executives will pay a criminal fine of $20,000 and also serve time in US prison (16 months). Denso also pleaded guilty for conspiring and agreed to pay a fine of $78 million in 2012. The executives conspired in changing the prices for heater control panels used to regulate a vehicle’s temperature, and were sold to Toyota and a subsidiary in the US, said the Justice Department.

This settlement is the latest among several investigations related to price fixing for auto parts, in which are involved 9 companies and 14 executives.

Source: Bloomberg