Auto parts maker Samvardhana Motherson International Ltd. (SAMIL) has approved the acquisition of an 81 percent stake in Yutaka Giken Co. Ltd. and an 11 percent stake in Shinnichi Kogyo Co. Ltd. through its wholly owned indirect arm, Motherson Global Investments BV.
Yutaka Giken, a Tokyo Stock Exchange-listed company, holds a 62 percent stake in Shinnichi Kogyo.
Honda to retain minority stake
Currently, Honda Motor Co. owns 69.66 percent of Yutaka Giken, with the rest held by public shareholders. Under the deal, Motherson Global Investments BV will gradually acquire 81 percent of Yutaka Giken’s voting rights, while Honda will continue to hold the remaining 19 percent stake.
The acquisition is valued at $184 million, representing the total cash outflow for the 81 percent share purchase.
Strategic boost for Motherson
SAMIL said the deal would help strengthen its long-standing partnership with Honda and expand its business with other Japanese automakers. The acquisition also offers scope to cross-sell Yutaka Giken’s product portfolio to global carmakers, especially in emerging markets.
The transaction is subject to approvals from merger control authorities in Japan, the US, China, Brazil, and Mexico. Closing is expected by Q1 FY26-27.
About Yutaka Giken
Yutaka Giken manufactures metal components and assemblies including rotors, stator assemblies, drive systems, brake systems, and thermal management systems.
The company runs 13 manufacturing plants and one R&D facility across nine countries: Japan, China, the US, Thailand, Brazil, India, Indonesia, Mexico, and the Philippines. Notably, Yutaka Giken is a debt-free company.
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