Honda exits from electronic parts unit, sells to Nidec in USD500 million deal - daily
On Wednesday, the Nikkei business daily reported that Honda Motor Co would be exiting from Honda Elesys Co in a JPY500 billion or USD500 million deal. The daily also added that Honda would be selling its electronic parts subsidiary to Nidec Corp of Japan. Honda co-owned the electronic parts subsidiary together with NEC Corp.
The unit sale was reportedly part of Honda's business partnership strategy with Nidec. Nikkei disclosed that the two companies would forge a cooperative agreement to capitalize on the growing demand of electronic controls for cars. Nidec makes eletric precision motors that are found in manufacturing equipment, hard-disk drives, and household electric appliances.
The terms of the agreement, as discussed by the paper, would have Honda selling a majority stake in Honda Elesys Co. Nikkei added that Honda would be selling the ownership stake to Nidec in early 2014.