Foxconn, Mitsubishi Electric finalise alliance for automotive equipment business
Under the agreement, Mitsubishi Electric will transfer to Lin Yin 50% of its stake in Mitsubishi Electric Mobility, which handles Mitsubishi Electric’s automotive equipment business, after which the two co-owners will jointly operate Mitsubishi Electric Mobility.
Lin Yin, an investment management subsidiary of Foxconn, and Mitsubishi Electric have announced that they have formalised a strategic alliance for the joint operation of an automotive equipment business. Through the alliance, the companies aim to develop next-generation mobility and thereby strengthen the sustainable growth of the Japanese automotive industry, according to a press release.
Under the agreement, Mitsubishi Electric will transfer to Lin Yin 50% of its stake in Mitsubishi Electric Mobility, which handles Mitsubishi Electric’s automotive equipment business, after which the two co-owners will jointly operate Mitsubishi Electric Mobility.
The share transfer price is expected to be JPY 115.0 billion. The share transfer agreement establishes an enterprise value of JPY 320.0 billion and an equity value of 230.0 billion for the target business. The transfer price corresponds to a 50% stake to be transferred based on the equity value.
Subject to the satisfaction of contractual conditions, including obtaining required approvals and clearances from relevant authorities under competition laws and other applicable laws and regulations, the share transfer is expected to be completed in October 2027, the press release said.
The joint-operating arrangement will combine Mitsubishi Electric Mobility’s technological and developmental capabilities, particularly in electric powertrains, software and vehicle control, with Foxconn’s speed, scale and other strengths in market deployment.
