Toyoda Machine Works said on Monday it will pay around 11.25 billion yen for the differential gear operations of Bosch Automotive Systems Corp. that it has agreed to buy, Dow Jones reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The final purchase price will be set on August 31, when the operation will be transferred to Toyoda Machine, it reportedly said. Toyoda and Bosch Automotive agreed on the business transfer in late July, the news agency noted.

According to Dow Jones, Bosch Automotive currently generates 7.17 billion yen in annual sales from the production of automotive torque-sensing differential gears – annual sales of the product account for about 2% of Bosch Automotive’s overall sales.

Bosch Automotive is a unit of the German engineering giant Robert Bosch GmbH, the report added.

Toyoda Machine, a machine tool and automotive parts maker affiliated with Toyota Motor Corp., aims to expand the differential gear business it will acquire, targeting annual sales of 11 billion yen in the fiscal year to March 2006, and hopes to further raise that to 20 billion yen in the near future, Dow Jones said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

By purchasing Bosch Automotive’s operation, Toyoda Machine will be able to supply differential gears for a wider range of vehicles – users of the firm’s differential gears include Toyota and Volkswagen, the report said.

According to Dow Jones, Toyoda Machine also said on Monday it will offer 6.14 million of its outstanding shares currently privately held by three banks to the public in September to help increase the shares’ liquidity in the stock market and encourage a wider range of investors to hold its shares – the company has about 130 million shares outstanding.

The offering price will be set by Aug. 29, Dow Jones said.