State-backed Japan Investment Corp (JIC) is in talks to acquire leading Japanese chipmaker JSR Corp for about $7 billion or 1 trillion yen, the Nikkei business daily reported on Saturday. The deal is not final yet, and the board of JSR will discuss the matter on Monday. 

According to the report, JIC aims to make a tender offer as early as this year after clearing the buyout with domestic and foreign antitrust authorities. If the deal goes through, JSR will be delisted from the Tokyo Stock Exchange as soon as 2024. 

Nikkei reported that JIC intends to establish a new company with 500 billion yen in capital, with Mizuho Bank providing 400 billion yen in financing, to purchase JSR. The rest 100 billion yen will be raised through preferred shares and subordinated loans underwritten by various banks.

JSR started as a government-backed synthetic rubber maker in 1957 but now supplies photoresists to global chipmakers and has a 30% global market share. After the deal, JSR would get greater freedom for expansion without worrying about stock market performance.