Automotive
Foxconn agrees to buy half of Mitsubishi Electric's auto parts unit
Electrek reports Foxconn's investment arm agreed to pay ¥115 billion ($727 million) for a 50% stake, with closing expected in October 2027.
The short version
- Foxconn's investment arm agreed to buy a 50% stake in Mitsubishi Electric Mobility for ¥115 billion ($727 million).[Electrek]
- The deal values the unit at ¥320 billion enterprise value and forms an equal joint venture to develop Japanese EV platforms.[Electrek]
- Mitsubishi Electric expects a ¥100 billion impairment this fiscal year, and the unit's business is shrinking.[Electrek]
- Closing is expected October 1, 2027, after antitrust review, and the power semiconductor unit is excluded.[Electrek]
Key facts
- Foxconn's investment arm, Lin Yin International Investment, signed a final agreement to take a 50% stake in Mitsubishi Electric Mobility for ¥115 billion ($727 million).[Electrek]
- The deal values the business at ¥320 billion ($2 billion) in enterprise value and ¥230 billion in equity value.[Electrek]
- Closing is expected on October 1, 2027, after antitrust reviews.[Electrek]
- The two companies will run the business as an equal joint venture that aims to develop EV platforms in Japan and targets more than ¥1 trillion ($6.3 billion) in revenue for the fiscal year starting April 2030.[Electrek]
- The deal excludes Mitsubishi Electric's SiC and IGBT power semiconductor business, which is in separate merger talks with Rohm and Toshiba.[Electrek]
- In the fiscal year ended March, the automotive business generated ¥875.6 billion in revenue and ¥54.4 billion in operating profit, and it expects ¥820 billion in revenue this year.[Electrek]
- Mitsubishi Electric expects to book a ¥100 billion impairment this fiscal year because the ¥230 billion equity value is well below roughly ¥352 billion in net assets on its books.[Electrek]
- Mitsubishi Electric spun its automotive equipment group into Mitsubishi Electric Mobility in April 2024 and will fold the rest of its car business, including overseas subsidiaries, into the unit before closing.[Electrek]
What remains uncertain
- Closing depends on antitrust clearance, which has not been reported as granted.[Electrek]
- Electrek characterizes the target as primarily a legacy Tier 1 parts supplier with declining revenue and no proven EV components partnership; the EV revenue target is a goal, not a result.[Electrek]
- Only Electrek is reporting this deal in the provided reporting, so the figures have not been independently confirmed by other outlets.[Electrek]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.