Tamron confirms Sony $1.2 billion takeover approach

Tamron has confirmed a non-binding $1.2 billion takeover proposal from Sony, potentially affecting the many lenses the company makes for other manufacturers.

Tamron has officially confirmed it received a non-binding takeover proposal from Sony, ending days of speculation sparked by a report from Japanese outlet Diamond.

In a statement, Tamron said: "It is true that we have received a non-binding proposal from Sony Corporation regarding the implementation of a series of transactions aimed at making our company a wholly-owned subsidiary of the Sony Group, and that, in response to this, we have established a special committee to consider various options for enhancing corporate value, however, there are no matters requiring disclosure at this stage.”

In short, yes it’s happening and Tamron has not rejected the approach. The company has a market cap of just under 183 billion yen ($1.22 billion), close enough to the 200 billion yen ($1.22 billion) figure Diamond reports as Sony's offer to make things interesting.

Sony had been Tamron's largest shareholder for some time until Singaporean investment firm Effissimo Capital Management expanded its holding recently and pushed it into second place. While it denies that it has any intention of mounting a takeover bid itself, this seems to have triggered Sony's defensive move, which makes perfect sense on paper. Tamron makes more than 20 lenses for Sony's E-mount system, spanning APS-C and full-frame, and its activity at the lower end of the market means Sony can keep its attention focused on the higher-margin premium glass.

What happens next?

There are many questions here. A lot of Tamron’s business is tied up in making lenses for other ecosystems and many Nikon Z, Fujifilm X and Canon APS-C shooters currently rely on Tamron glass. Would Tamron continue to exist as a distinct brand under full Sony ownership? Would Sony keep, restrict or wind down the OEM business for rival mounts? On one hand shuttering rival lens production would boost E-mount, but on the other it would also seriously undermine Tamron’s current profitability.

No deal has been finalized, and acquisitions of this kind can still collapse. Sony has confirmed it has approached Tamron but declined to comment on value, saying no decision has been made.