Deals
Honda and Hitachi to Merge Four Car Parts Makers, Yomiuri Says
- Deal would combine four parts makers through tender offer
- Hitachi to own two-thirds of newly created component supplier
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Honda Motor Co. and Hitachi Ltd. agreed to merge four of their car parts businesses to create a components supplier with almost $17 billion in sales, joining a wave of partnerships sweeping the global auto industry.
Honda, Japan’s second-biggest carmaker, and Hitachi, one of the country’s biggest industrial conglomerates, said Wednesday they will combine Hitachi Automotive Systems and Honda affiliates Keihin Corp., Showa Corp. and Nissin Kogyo Co. Following a tender offer and an interim consolidation, Hitachi will own two-thirds of the new entity, with Honda owning the rest, the companies said. Shares of the partsmakers soared.