Japan’s NTN Corporation has agreed to acquire a controlling stake in SNR Roulements (SNR), Renault’s bearings division.
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In a statement, NTN said the phased acquisition consisted of an initial capital participation of 35% in SNR, acquiring 51% of SNR’s shares one year after the initial closing, and acquiring 80% of shares within a target period from the third anniversary to the fifth anniversary of the closing.
In 1998, NTN and Renault established a joint venture in France to make constant velocity joints (CVJ) and other automotive power train parts.
“NTN aims to expand this existing solid partnership in CVJ business with Renault into the bearing business, too,” the statement said.
The acquisition will make NTN the leading bearing producer in France and one of the leading manufacturers world-wide.
NTN said it expected the deal to improve its presence by capitalising on the significant presence that SNR holds in the European region.
It added it would complete the required procedures and aim to close the deal by the end of October.
