**NTT Corp. Secures Bids for NTT Data Acquisition to Enhance AI Strategy**
Nippon Telegraph and Telephone Corp. (NTT) has announced that it has received sufficient bids to proceed with the acquisition of NTT Data Group Corp. The deal, valued at ¥2.37 trillion (approximately $16.3 billion), is anticipated to bolster NTT’s ambitions in artificial intelligence (AI) and streamline its corporate structure. The settlement process is set to commence on June 26, as stated in a recent announcement.
NTT, which holds around 58% of NTT Data, proposed a buyout offer of ¥4,000 per share for the remaining shares it does not already own, with intentions to take the company private. This acquisition of NTT Data, recognized as one of the largest data center operators globally, aims to position AI at the core of NTT’s operations, thereby enhancing the international presence of its various divisions.
As a company partially owned by the government, NTT faces competition from KDDI Corp. and SoftBank Corp. in the rapidly evolving AI sector. This move aligns with Tokyo’s initiative to encourage domestic companies to develop their own AI platforms to compete with major players like OpenAI and China’s DeepSeek. Additionally, Japanese conglomerates are under increasing pressure from regulators to simplify their corporate structures.
In February, the Tokyo Stock Exchange urged companies with parent-affiliate listings to prioritize the interests of minority shareholders, intensifying its long-standing efforts to minimize such arrangements. Following this, NEC Corp. acquired its subsidiary NEC Networks & System Integration Corp., and reports surfaced regarding Toyota Motor Corp. Chairman Akio Toyoda’s plans to acquire Toyota Industries Corp. These developments have sparked speculation that more companies may pursue similar strategies.
NTT previously expanded its portfolio by acquiring its profitable wireless carrier, NTT Docomo Inc., in 2020, further solidifying its position in the telecommunications and technology sectors.
**FAQ**
*What is the significance of NTT’s acquisition of NTT Data?*
The acquisition is significant as it aims to enhance NTT’s capabilities in artificial intelligence, streamline its corporate structure, and expand its global reach in the technology sector.
