© Veoneer General | October 30, 2019
Veoneer to divest its Japan and China JV:s
Swedish ADAS company Veoneer, says that it has singed agreements to sell its 51% ownership in the Japanese (VNBJ) and Chinese (VNBZ) entities that comprise Veoneer Nissin Brake Systems (VNBS) to its JV partner Nissin-Kogyo Co., Ltd. and Honda Motor Co., Ltd.
When these transaction have been completed, the VNBS joint venture will be terminated. This is the next step in the strategic review of Veoneer's brake systems business first announced in early 2019. On June 17, 2019, Veoneer announced that it had signed a binding agreement to acquire Nissin Kogyo's interests in the US operations of VNBS. The transaction closed on June 28, 2019, after which Veoneer owns 100% of such US operations. The termination of the VNBS joint venture and the divestiture of the Japanese and Chinese entities are part of Veoneer's previously announced market adjustment initiatives which are aimed at focusing Veoneer on its core businesses and providing an effective cost structure to address the current market and business situation in the Company. The purchase price is around USD 176 million. In connection with the transactions, Veoneer will be repaid an outstanding loan of approximately USD 20 million and receive a special dividend of approximately USD 5 million for a total cash impact of around USD 200 million.