Regions

Honda exits from electronic parts unit, sells to Nidec in USD500 million deal - daily

October 30
5:49 AM 2013

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.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics