Hon Hai unveils Mitsubishi deal

Hon Hai Precision Industry Co (鴻海精密) has agreed to acquire a 50 percent stake in Mitsubishi Electric Mobility Co from Mitsubishi Electric Corp to establish a partnership to jointly operate an automotive equipment business.

CONDITIONS

Various electric vehicle models are showcased at the Foxconn booth at a trade show at the Taipei Nangang Exhibition Center on April 15.

Photo: I-hwa Cheng, AFP

In a statement released on Friday, Hon Hai, also known as Foxconn Technology Group (富士康) globally, said it had signed an agreement with Mitsubishi Electric under which it would spend ￥115 billion (US$727.5 million) through its subsidiary Lin Yin International Investment Co to acquire the stake in Mitsubishi Electric Mobility.

Hon Hai said the transaction is subject to the fulfillment of contractual conditions, including obtaining the necessary approvals and clearances from relevant authorities under antitrust laws and other applicable laws and regulations.

The company said it expects the transaction to be completed by Oct. 1 next year.

BENEFITS

After the transaction, Hon Hai and Mitsubishi Electric will jointly run Mitsubishi Electric Mobility, the Taiwanese company cited the agreement as saying.

“The joint-operating arrangement will combine Mitsubishi Electric Mobility’s technological and developmental capabilities, particularly in electric powertrains, software and vehicle control, with Hon Hai Precision Industry’s speed, scale and other strengths in market deployment,” Hon Hai said in the statement.

Over the medium to long term, the partners aim to bring Japanese technology and quality to global markets, further enhance the value of “Made in/by Japan,” and demonstrate new possibilities for Japanese manufacturing to the world, Hon Hai said.