M&A

M&A

Samvardhana Motherson to acquire 81% stake in Honda Motor's 4-wheeler auto parts unit for $158-M

BSE Disclosure  

Publicly-listed Samvardhana Motherson International Ltd (SAMIL, via its unit SMRP B.V.) is to acquire 81% stake in Japan-based Yachiyo's 4-wheeler (Y4W) business at an enterprise valuation of JPY 22.9 Billion (about USD 158 million). Honda Motor owns 50.4% stake in Yachio, which produces automobile parts such as sunroofs and fuel tanks. As a part of this transaction, Honda Motor will first buy out the entire public stake in Yachiyo and make it a wholly-owned subsidiary. Yachiyo's 2-wheeler business will get transferred to Honda. Subsequently, SAMIL will acquire 81% equity in the remaining business (of 4-wheelers) thereby entering into an 81:19 joint venture with Honda Motor. The Yachiyo 4W business had reported a revenue of JPY 116.1 Billion for FY23. The firm has 13 manufacturing facilities and 3 R&D facilities in 8 countries: Japan, China, United States, Thailand, Brazil, India, Indonesia, and Mexico.