TOKYO: Nidec Corporation has notified that its Board of Directors has approved a resolution to acquire OMRON Automotive Electronics Co. Ltd. from OMRON Corporation, a transaction estimated to be around JPY 100 billion.
Accordingly, Nidec entered into a stock purchase agreement on April 16, 2019.
Nidec positions its automotive motor business as one of the Company’s key strategic businesses, and is engaging in active efforts in the business for automotive motor market which is expected to grow rapidly in coming years.
Nidec is particularly focusing on module products with electric power steering (EPS) motors, electric brake motors, etc. and electronic control units (ECU) in accordance with the current trends towards electrification and autonomous driving in the automotive industry, as well as EV traction motor systems, etc. for which significant future market growth can be expected.
The Company anticipates that the electrification trend will accelerate further in response to the global environmental and energy related problems and will continue to engage in research and development with Elesys, an ECU manufacturer which joined Nidec group in 2014, to create more electrification products going forward.
OMRON Automotive Electronics engages in research and development, manufacturing, and sales of automotive electronics products as a subsidiary of OMRON Group, which has strengths in control equipment, systems, and electronic components based on its sensing and control technologies.
Through the Stock Acquisition, Nidec will acquire OMRON Automotive Electronics’ subsidiaries. At the same time of the Stock Acquisition, Nidec and its subsidiaries will acquire OMRON’s subsidiaries, OMRON AUTOMOTIVE
ELECTRONICS de Mexico, S. de R.L. de C.V. (“OAX”) and OMRON COMPONENTES AUTOMOTIVOS LTDA, and automotive electronic components business of OMRON VIETNAM CO., LTD., PT. OMRON MANUFACTURING OF INDONESIA and OMRON HONG KONG
LTD.