On December 6, 2024, Samvardhana Motherson International Limited (SAMIL) has announced a significant acquisition via its wholly-owned subsidiary, Samvardhana Motherson Automotive Systems Group B.V (SMRP B.V.), acquiring 95% of the shares in Atsumitec Co., Ltd, a Japan-based company.
On December 9, 2024, Samvardhana Motherson share price opened at ₹169.73, down from its previous close of ₹170.39. At 10:16 AM, the share price of Samvardhana Motherson was trading at ₹166.90, down by 2.05% on the NSE.
Atsumitec, which operates globally with subsidiaries in countries such as Thailand, Hong Kong, the U.S., Vietnam, China, and Mexico, is engaged in the production of high-precision machined components, including gear shifters, chassis, and transmission parts for 4-wheel and 2-wheel vehicles. It has a turnover of ~JPY 62 billion (~ USD 412 million) for FY 2023-24.
Honda Motor, the current major stakeholder with 48.01% of the shares, will retain 5% voting rights, while the remaining 95% will be acquired by Motherson through a series of steps, including share procurement from other shareholders.
The deal’s total value is expected to further strengthen Motherson’s portfolio in precision machining and expand its customer base, especially with Japanese OEMs (Original Equipment Manufacturers), which account for more than 25% of global 4W production.
The acquisition aligns with Samvardhana Motherson’s broader strategy to diversify its product portfolio and increase its footprint across key geographies, including entry into new markets such as Vietnam, which is essential for the 2W segment.
The company stated that the deal will enhance Motherson’s presence with Japanese OEMs, a core market contributing to global automotive production. Furthermore, the acquisition will offer cross-selling opportunities for Motherson’s existing products to Japanese OEMs and boost its competitive edge in the global market.
With this acquisition, Motherson also expands its access to global metal and machining capabilities, complementing its existing presence in India and Mexico. This move will allow the company to leverage its strong customer relationships and diversify its client base.
The acquisition, subject to merger control clearance from Japanese authorities and regulatory approvals, is expected to be completed by Q1 FY26. This strategic move is poised to enhance SAMIL’s operational efficiency and market penetration in the automotive sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 9, 2024, 11:03 AM IST
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