CG Power and Industrial Solutions announced on Saturday that it has entered into an asset purchase agreement with advanced semiconductor solutions supplier company Renesas Electronics Corporation to acquire radio frequency component business. According to the company, this agreement was signed on October 4 between CG Power and Renesas Electronics' subsidiary Renesas Electronics America. The company said that with the help of this agreement, it will enter the semiconductor design business.

CG Power has informed that after completion of all formalities and obtaining approvals, the formed entity will acquire this business. CG Power's stock witnessed a sharp decline in Friday's trading and the stock closed below the level of 725 with a decline of more than 2 percent.
The company said in a communication sent to the stock exchange that through this transaction, CG will acquire IP, assets and select employees of various functions related to the RF component business such as semiconductor design, marketing, application etc. The company also said that if all approvals are received as per estimates, the entire acquisition process can be completed in 6 months. The entire deal is worth $36 million and will be completed in cash. CG Power is associated with the electrical engineering industry and works in two business lines, industrial systems and power systems. The company also provides services to the Indian Railways. In Friday's trade, CG Power's stock closed at 719 with a decline of 2.6 percent on the BSE. During trading, the stock also reached 742 as compared to the previous closing level of 738. The stock's highest level of the year was 814, while the lowest level of the year was 360. A year ago, the stock was trading around 425.