Toyota affiliates Denso Corporation and Aisan Industry will take stakes in each other to deepen deeper cooperation in fuel injection and other engine technologies.
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Denso, the world’s second-biggest auto parts maker, plans to buy 5.5m Aisan shares, or 9.95% of its outstanding shares, from Toyota Industries for 7.43bn yen ($61.97m) at 1,350 yen a share, according to Reuters which added that Toyota Industries, a core member of the Toyota group, now holds 17.34% of Aisan.
Aisan, primarily a maker of fuel-related components and the world’s top maker of throttle bodies, will in turn buy up to 1.5bn yen ($12.51m) worth of Denso shares – it now holds 28,589 shares in Denso, the report said.
Reuters noted that Denso and Aisan have had an operational tie-up in the production and development of throttle bodies since 2000 and later expanded their cooperation to fuel injectors, fuel pumps and other areas.
But with rapid expansion in emerging auto markets and the introduction of tighter fuel economy and emissions regulations around the world, closer cooperation from the early stages of development has become crucial to compete more effectively, Denso and Aisan were reported to have said.
Denso will purchase Aisan’s shares between 14 May and 11 June. Toyota Motor will remain Aisan’s top shareholder with around one-third, while Toyota Industries’ stake will fall to 7.4%, the news agency reported.
Aisan sold around 3.6bn yen ($30m) worth of parts to Denso during the business year ended 31 March while it bought about 6.8bn yen ($57m) of goods from Denso, the report added.
