Honda is to make each of Keihin, Showa, and Nissin its wholly-owned subsidiary and merge them into Hitachi Automotive Systems to create a US$15.6bn supplier leviatian.
The merger will enable combination of the respective technologies of Keihin’s powertrain business, Showa’s suspension and steering operations and Nissin’s brake offer with the Hitachi Automotive Systems’ three core businesses; namely powertrain, chassis and safety systems.
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The board of directors of each of Keihin, Showa and Nissin have each obtained a written report from a special committee established in each company as an advisory body for the board of directors; and by a unanimous vote of all directors who participated in the resolution held today, they expressed their opinion as of today to support the Tender Offer at the commencement of the Tender Offer and resolved to recommend to the shareholders of Keihin, Showa, and Nissin to tender in the Tender Offer.
“We are excited to be able to agree on the establishment of the integrated company in the automotive and motorcycle systems business,” said Hitachi VP and executive officer, Keiji Kojima.
“In Hitachi’s Smart life sector to which Hitachi Automotive Systems belongs, Hitachi Automotive Systems is strengthening core businesses such as powertrain systems, chassis, and safety systems in order to create communities that are easy to live in, which helps improve the quality of people’s lives. The establishment of the Integrated Company will accelerate this transformation.”
For his part, Honda managing officer, Noriya Kaihara, added: “We are confident by the synergy created by intercrossing the strengths of the three companies active as the core of the Honda Group with that of Hitachi Automotive Systems, technological development will further accelerate.”
