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January 17, 2022updated 21 Jan 2022 1:05pm

Denso and Aisan reach deal on transfer of fuel pump business

Aisan will take on Denso’s fuel pump module business in a deal that allows the two firms to specialize in core strengths, while continuing to work together.

By David Leggett

Denso and powertrain supplier Aisan have announced their respective boards have signed an agreement to transfer Denso’s fuel pump module business to Aisan. In addition, Aisan will acquire Denso’s equity stake in its US operation (Kyosan Denso Manufacturing Kentucky, LLC (KDMK), located in Mt. Sterling, KY.

The two companies previously announced that they reached a basic agreement on May 20, 2019, to begin studying the possibility of strengthening their competitiveness in powertrain and future growth areas. As a result of the study, the companies agreed that Denso will transfer its entire business of developing, producing, and selling fuel pump modules to Aisan, and Aisan will acquire Denso’s equity stake in KDMK.

Additionally, the companies determined that Denso will not increase its ownership stake in Aisan.

Denso said the agreement will allow Denso to focus on its ‘Two Great Causes: Green and Peace of Mind’, under which it will work to achieve carbon neutrality, zero traffic accidents and a ‘safe and seamless society’.

Aisan will work to improve its product capabilities by combining both Aisan and Denso’s technology and knowhow, as well as maximizing resources to improve production efficiency and achieve low-cost manufacturing.

The two companies will continue to collaborate and utilize each other’s strengths and contribute to the realization of a sustainable mobility society, they said.

This business transfer is subject to approval from the antitrust authorities in the relevant countries and regions.

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