Foxconn to take 50% stake in Mitsubishi Electric’s automotive business
Foxconn has reached a final agreement with Mitsubishi Electric to buy half of Mitsubishi Electric Mobility for JPY 115 billion (EUR 646.3 million). The two companies will then run the automotive equipment business together.
The stake will be acquired by Lin Yin International Investment, Hon Hai Precision Industry’s investment management subsidiary, according to a press release from Foxconn. The agreement values Mitsubishi Electric Mobility at an enterprise value of JPY 320 billion (EUR 1.8 billion) and an equity value of JPY 230 billion (EUR 1.3 billion). The purchase price corresponds to 50% of the equity value.
The transaction still requires regulatory approvals, including competition clearance. It is expected to close on 1 October 2027.
Mitsubishi Electric Mobility is the unit that runs Mitsubishi Electric’s automotive equipment business. Under the joint operation, its capabilities in electric powertrains, software and vehicle control will be combined with what the press release describes as Foxconn’s speed, scale and strength in market deployment.
The companies plan to offer electric vehicle platforms developed in Japan. The initial focus is on the Japanese automotive industry, and the companies aim to take the technology to global markets over the medium to long term.