Japan's Oki Electric and Rohm announced on May 28 that the two companies have reached an agreement for Oki to transfer its semiconductor business to Rohm, according to an AFP report.

It is reported that Oki will spin off its semiconductor business into a new company named Oki Semiconductor. Furthermore, Oki will sell 95% stake in the new company to Rohm for an estimated value of 85.5 billion Yen (US$803.7 million; US$1= 106.4 Yen). The deal, currently pending approval by the shareholders of Oki Electric, is slated for completion by October 1, 2008, according to the AFP report.