BREAKING NEWS: Mitsubishi Electric to Sell 50% Stake in Auto Equipment Unit to Hon Hai
The $728 million deal gives Foxconn a foothold in electric vehicle systems as it expands under its 3 plus 3 strategy.
- On Friday, Hon Hai Precision Industry agreed to acquire a 50 percent stake in Mitsubishi Electric Mobility from Mitsubishi Electric Corp for 115 billion Japanese yen to jointly operate an automotive equipment business.
- Aligned with the "3 plus 3" strategy, the acquisition represents Hon Hai's aggressive diversification into electric vehicles, robotics, and digital health care alongside integrated hardware and software solutions.
- Combining technological capabilities, the partnership merges Mitsubishi Electric Mobility's expertise in electric powertrains and software with Hon Hai's speed, scale, and market deployment strengths, Hon Hai said.
- Before completion, the transaction must satisfy contractual conditions, including obtaining necessary approvals and clearances from relevant authorities under antitrust laws and other applicable regulations.
- Partners aim to enhance the value of "Made in/by Japan" globally, with Hon Hai expecting the transaction to complete by October 1, 2027, according to the company's statement.
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Hon Hai unveils Mitsubishi deal
Hon Hai Precision Industry Co (鴻海精密) has agreed to acquire a 50 percent stake in Mitsubishi Electric Mobility Co from Mitsubishi Electric Corp to establish a partnership to jointly operate an automotive equipment business. CONDITIONSIn a statement released on Friday, Hon Hai, also known as Foxconn T
Hon Hai to acquire 50% stake in Mitsubishi Electric Mobility
Taipei, Oct. 17 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has agreed to acquire a 50 percent stake in Mitsubishi Electric Mobility Co. from Mitsubishi Electric Corp. to establish a partnership to jointly operate an automotive equipment business.
Foxconn and Mitsubishi Electric announced a joint venture at 50-50 to offer electric vehicle platforms to car manufacturers. The alliance seeks to combine the scale and speed of the Taiwanese group with the technology of the Japanese company, at a time of increasing competitive pressure for traditional automotives.
Taiwanese Hon Hai (Foxconn), the world's largest manufacturer of electronic products, will acquire 50% of Mitsubishi Electric Mobility for 115,000 million yen (about €651 million), announced today the companies. The agreement aims to facilitate the creation of electric vehicle platforms developed in Japan and boost the joint venture's sales to a billion yen in the fiscal year 2030.
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