Renesas Electronics Corporation (TSE:6723) is holding talks to acquire Maxim Integrated Products, Inc. (NasdaqGS:MXIM). A deal isn't imminent and one may not happen, according to several sources close to the matter. The deal could be close $20 billion.

The sources asked not to be named because the discussions are private. Renesas has denied "speculations" that it is "in talks for a possible acquisition." “Certain media reports were published today that Renesas is in talks for a possible acquisition," a Renesas spokeswoman told CNBC. "They were not based on a Renesas announcement.

The company denies the speculations in the reports." CNBC added that a spokeswoman for Maxim declined to comment. Shares of maxim jumped 12%.