KYOTO, Japan, Oct. 30, 2013 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company" or "Nidec") today announced that it has agreed to acquire all of the shares of Honda Elesys Co., Ltd. ("Elesys") from its shareholders, Honda Motor Co., Ltd. ("Honda"), NEC Corporation, Showa Corporation and Nissin Kogyo Co., Ltd. (the shareholders are correctly referred to as the "Shareholders") (the "Transaction"). For this purpose, the Company entered into a stock purchase agreement (the "Stock Purchase Agreement") with each of the Shareholders as of today.
1. Purpose and background of the Transaction
With its fundamental business strategy to specialize in the area of various motors and other products that "spin and move" and in the area of related application products, equipment and parts, Nidec Group has developed its business in a wide range of markets for motors, including information technology, automotive motors, home appliances, commercial and industrial equipment and others.
The Company began to expand its automotive motor business in December 2006 by acquiring the Motors & Actuators business (currently, Nidec Motors & Actuators) from Valeo S.A., a French company. Since then, as one of its priority strategic areas, Nidec Group has actively engaged in acquisitions of automotive motor businesses, including the acquisition of Jiangsu Kaiyu Auto Appliance Co., Ltd. (currently, Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd.) in December 2012 and the expected acquisition by Nidec Sankyo Corporation, a subsidiary of Nidec, of Mitsubishi Materials C.M.I. Corporation pursuant to a basic agreement signed in September 2013.
Elesys, the subject company of the Stock Purchase Agreement, is a subsidiary of Honda and one of the world-leading electronics system manufacturers that develops, manufactures and sells electronic control units for automobiles.
In the market of electric power steering (EPS) motors, integration with electronic control unit (power-pack) is increasingly required. By combining the Company's EPS motors with Elesys' electronic control units (ECU), the motor business has the potential to be transformed into a module business, facilitating a great stride for the Company toward the Company's goal to be the "world's top global mega supplier" in the area of automotive components.
The Company anticipates extensive synergies in the Transaction. In particular, given the increasing power-packing of every automotive motor (in addition to EPS, motors for engine cooling fans (ECF), power windows (W/L) and sun roofs (S/R), etc.), Elesys' advanced ECU control technology is expected to improve the Company's motor performance further and enable low cost and high performance, with a great potential for expansion in the power-pack business with respect to EPS, ECF, W/L and S/R, etc. The Company is aiming to enter into the main traction motor market for electric/hybrid cars in the future, and the Transaction is expected to enable the Company to make proposals for new systems in that market. In addition to product technologies, synergies with global development of business, development and manufacturing bases are also expected.