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. In Friday's trade, CG Power's stock saw a sharp decline and the stock closed below the level of 725 with a decline of more than 2 percent. In the information sent to the stock market, the company said that through this transaction, CG will acquire IP, assets and some selected employees of different functions related to the RF component business such as semiconductor design, marketing, application etc. The company also said that if all the approvals are received as per estimates, then the entire process of acquisition can be completed in 6 months. This 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 share closed at 719 on BSE with a decline of 2.6 percent. During trading, the stock also reached the level of 742 against the previous closing level of 738. The highest level of the year for the stock was 814 while the lowest level of the year was 360. A year ago, the stock was trading around the level of 425.