SAMIL to purchase 81% of Honda Motor subsidiary for Rs 10.59 bn

Samvardhana Motherson International (SAMIL) plans to acquire an 81% stake in Yachiyo Industry Co, a subsidiary of Honda Motor. The purchase price for this acquisition is set at Rs 10.59 billion. The auto parts manufacturer, based in Noida, expects the deal to be finalized in the first quarter of the 2024-25 fiscal year. Yachiyo Industry Co. specialises in manufacturing various components for automobiles, including sunroof systems, fuel tanks, and exterior resin parts like bumpers and rear-side windows for pickup trucks. This acquisition marks SAMIL's second global purchase in 2023. In February, they had previously announced the acquisition of SAS Autosystemtechnik GmbH & Co.KG (SAS) from Faurecia, a French company, for a total of Rs 47.90 billion. SAS is known for manufacturing auto cockpit modules. Before the agreement between SAMIL and Yachiyo is finalised, Yachiyo's two-wheeler business will be transferred to Honda. However, SAMIL will acquire 81% of Yachiyo's four-wheeler business, which currently employs approximately 3,200 people across 13 manufacturing facilities and three research and development centers in eight countries including the US, Brazil, Mexico, China, Japan, Thailand, Indonesia, and India. SAMIL stated that the equity value for the entire approximately Rs 13.07 billion. Vivek Chaand Sehgal, the chairman of SAMIL, expressed his enthusiasm about the acquisition, describing it as a significant milestone for Motherson. He stated that being chosen by Honda San for a global partnership was an honor, and they would strive to fulfill the trust placed in them by Honda San. Also read: Q2 2023 sees NCR’s unsold housing stock drop 21%Magenta Mobility unveils PLENT