The Competition Commission of India (CCI) has cleared Honda Motor’s proposal to acquire an additional 21% stake in automotive components manufacturer Astemo from Hitachi.
Astemo was created in January 2021 through the integration of Hitachi Automotive Systems with three Honda group companies: Keihin Corporation, Showa Corporation and Nissin Kogyo.
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The company operates in India through the manufacture and sale of automotive components for automobiles, two-wheelers and power products.
As part of the deal, Honda will buy 21% of Astemo’s common shares from Hitachi for about Y152.3bn ($941.7m).
Following the transaction, Honda’s voting rights in Astemo will rise from 40% to 61%.
Hitachi’s holding will decline from 40% to 19%, while the 20% stake held by Japanese investment fund JICC-01 Limited Partnership will remain unchanged.
In October 2023, JIC Capital joined Astemo as a shareholder through its subsidiary JICC-01.
That move revised the ownership structure to 40% each for Honda and Hitachi, with JICC holding the remaining 20%.
Honda and Hitachi signed the share transfer agreement in December 2025.
After the deal is completed, Astemo will no longer be treated as an equity-method associate of Hitachi and will become a consolidated subsidiary of Honda.
Honda has said that, as the parent company, it plans to steer Astemo’s expansion as a global automotive supplier, while an initial public offering continues to be considered.
Hitachi said it would use the proceeds in line with its capital allocation policy to maximise corporate value and support growth under its “Inspire 2027” management plan.
It also said the deal would not have a material effect on its consolidated financial statements.
The company added that it would continue to back Astemo’s sustainable growth as a shareholder after the transfer, particularly in digital technologies, while keeping an IPO under consideration.
The transaction is scheduled to close in the first quarter of the financial year ending 31 March 2027, subject to regulatory clearances and customary closing requirements.
