Nippon Telegraph and Telephone Corp. (NTT) Has Successfully  Secured $16.3 Billion in Bids to acquire NTT Data Group Corp.

Nippon Telegraph and Telephone Corp. has secured bids to acquire NTT Data Group Corp. for ¥2.37 trillion ($16.3 billion). This is aimed to enhance its AI capabilities and streamline its corporate structure.

In a groundbreaking deal valued at ¥2.37 trillion (around $16.3 billion), Nippon Telegraph and Telephone Corp. has secured bids to acquire NTT Data Group Corp. This strategic move is poised to significantly bolster NTT’s artificial intelligence (AI) capabilities while streamlining its corporate structure for greater efficiency.

The acquisition process is set to kick off on June 26, following NTT’s compelling offer of ¥4,000 per share for the outstanding shares of NTT Data. This endeavor is not merely a corporate transaction; it represents Japan’s ambitious quest to establish a competitive AI landscape, particularly in light of increasing regulatory pressures advocating for corporate simplification.

Owning approximately 58% of NTT Data, NTT aims to take the company private, putting AI at the forefront of its operations. This pivotal takeover of NTT Data, one of the world’s leading data center operators to empower NTT Group to expand its global influence and solidify its position in the rapidly evolving AI sector. 

With nearly one-third of NTT owned by the government, the company is ready to compete head-on with giants like KDDI Corp. and SoftBank Corp., all while Tokyo encourages the development of a strong domestic AI platform to rival frontrunners like OpenAI and China’s DeepSeek.

Moreover, this strategic acquisition comes at a crucial time when Japanese conglomerates face increasing pressure from regulators to simplify their corporate structures. In February, the Tokyo Stock Exchange issued a stern warning to companies with parent-affiliate listings.

They urged them to better protect the interests of minority shareholders and intensify its long-term campaign to reform such corporate arrangements. Following this trend, we’ve seen prominent moves from companies like NEC Corp., which has acquired NEC Networks & System Integration Corp., along with rumors surrounding Toyota Motor Corp. Chairman Akio Toyoda’s plans to acquire Toyota Industries Corp. 

These developments signal a robust wave of restructuring within the industry, suggesting that more companies may soon follow suit. Notably, NTT’s prior acquisition of its highly profitable wireless arm, NTT Docomo Inc., in 2020 further underscores its commitment to strategic growth and innovation. 

This acquisition is not just a deal; it’s a transformative step towards a more competitive and innovative future for Japan’s AI landscape.