TOKYO (dpa-AFX) - Hon Hai Precision Industry Co., Ltd. (2317.TW, HNHAF)(Foxconn), an electronics manufacturing and technology company, and Mitsubishi Electric Corp. (6503.T), an electronics and electrical equipment company, announced that they had finalized a strategic alliance to jointly operate an automotive equipment business.
Under the agreement, Mitsubishi Electric will transfer a 50% stake in its automotive equipment subsidiary, Mitsubishi Electric Mobility Corp., to Lin Yin International Investment Co., Ltd.
Lin Yin is an investment management subsidiary of Foxconn.
The share transfer price is expected to be 115 billion yen.
The transaction values the business at an enterprise value of 320 billion yen and an equity value of 230 billion yen.
The share transfer is expected to be completed in October 2027.
The companies aim to combine Mitsubishi Electric Mobility's expertise in electric powertrains, software and vehicle control with Foxconn's manufacturing scale and market deployment capabilities.
The company said that the alliance aims to develop next-generation electric vehicle platforms, support the sustainable growth of Japan's automotive industry and expand Japanese automotive technology and manufacturing capabilities into global markets.
Hon Hai Precision Industry Co. closed trading 1.84% lesser at TWD 239.50 on the Taiwan Stock Exchange.
Mitsubishi Electric corp. Closed trading 1.04% lesser at JPY 4,953 on the Tokyo Stock Exchange.
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