Mitsubishi Electric Corp. is reportedly planning to sell its automotive equipment business.
A Bloomberg report said the vast conglomerate plans to solicit bids for the unit, citing people familiar with the matter.
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The report said the manufacturer will accept first-round proposals until Jan. 26 from potential buyers – who could be from private equity or other major automotive suppliers.
The sale could be worth over $1.3 billion, the report suggested.
Analysts say the slowdown in electric vehicle sales – notably in the US – as well as highly competitive conditions in major markets (such as China) are making it more difficult for parts suppliers (Mitsubishi Electric’s auto division specialises in inverters and automotive motors) to be profitable.
Mitsubishi Electric has been looking to restructure its automotive equipment business in recent years.
