Samvardhana Motherson International (SAMIL) has agreed to acquire a 95% stake in Japanese auto components manufacturer Atsumitec for $57m.
The transaction will be carried out through a wholly owned subsidiary of Samvardhana Motherson Automotive Systems Group BV.
The remaining 5% voting rights will remain with Honda Motor, which currently holds a 48.01% stake in Atsumitec. The rest of the shares are owned by the company’s founders and other shareholders.
The company in a stock market notification said: "Equity value for 100% stake in Atsumitec is Y8.5bn or $57m.
“The $412m turnover Atsumitec makes high precision machined components including gear shifters, chassis and transmission parts for four and two-wheelers and has nine plants in Japan, China, United States, Mexico, Thailand, Indonesia and Vietnam.
The deal will be a multi-step one starting with the procurement of 51.99% shares from other shareholders by a special purpose company (SPC) incorporated by the seller with a minimum threshold of 48.02% to be procured.
"As of the date of this announcement, the SPC has already procured 31.75% stake from other shareholders out of the 51.99%," the stock filing said.
Following regulatory approvals, expected by the fourth quarter of FY25, SAMIL will finalise the acquisition and gain consolidation rights, enabling it to reconstitute Atsumitec’s board.
As part of the deal, Atsumitec plans a share buyback of Honda Motor’s stake, ensuring 95% ownership by SAMIL while Honda retains a 5% interest.
"On the day of buy back, SAMIL will additionally purchase 49% stake in Atsumitec Indonesia from Honda Motor," said the notification.
The entire transaction should close by Q1FY26.
SAMIL said that the acquisition aligns with its strategic goals of strengthening ties with Japanese original equipment manufacturers (OEMs) and expanding its business into new product lines and geographies.
Atsumitec specialises in chassis and transmission parts for both four-wheelers and two-wheelers, offering SAMIL an entry into Vietnam's two-wheeler market and enhancing its global metal and machining capabilities.
SAMIL highlighted that this move would diversify its customer base, provide cross-selling opportunities to Japanese OEMs, and complement its existing operations in India and Mexico.
The company views the acquisition as a step toward expanding its footprint in the global automotive components industry.
