Nidec (NJ) to Acquire Majority Interest in China-Based Jiangsu Kaiyu Appliance
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Nidec Corporation (NYSE: NJ) has agreed to acquire shares in Jiangsu Kaiyu Auto Appliance Co., Ltd., a Chinese company, to be privately issued to the Company in a capital increase transaction, and entered into an agreement for the Transaction with Jiangsu Luokai Mechanical and Electrical Manufacturing Group Co., Ltd. and the other shareholders of Kaiyu. Immediately following the Transaction, the Company is expected to hold a 51% ownership interest in Kaiyu.
Detail
The Company has sought to expand its automotive motor business as one of its pillar businesses not only through organic growth but also by actively pursuing opportunities to acquire companies in the industry.
Kaiyu sells its products to Chinese automobile manufacturers and has a strong presence in the Chinese market, which is expected to expand and grow, as a manufacturer of brush motors for electric power steering ("EPS") systems. Through the Transaction, the Company seeks to acquire technologies for brush motors for EPS systems, which the Company currently does not possess, and business opportunities in the Chinese automobile market, new entry into which has been difficult.
In addition, the Company and Kaiyu will aim to expand sales of brush motors for EPS systems to non-Chinese automobile manufacturers and to emerging economies outside China by mutually taking advantage of each other's research and development capabilities, manufacturing facilities and sales channels.
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Detail
The Company has sought to expand its automotive motor business as one of its pillar businesses not only through organic growth but also by actively pursuing opportunities to acquire companies in the industry.
Kaiyu sells its products to Chinese automobile manufacturers and has a strong presence in the Chinese market, which is expected to expand and grow, as a manufacturer of brush motors for electric power steering ("EPS") systems. Through the Transaction, the Company seeks to acquire technologies for brush motors for EPS systems, which the Company currently does not possess, and business opportunities in the Chinese automobile market, new entry into which has been difficult.
In addition, the Company and Kaiyu will aim to expand sales of brush motors for EPS systems to non-Chinese automobile manufacturers and to emerging economies outside China by mutually taking advantage of each other's research and development capabilities, manufacturing facilities and sales channels.
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