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.

In a statement released Friday, Hon Hai, also known as Foxconn globally, said it had signed an agreement with Mitsubishi Electric under which it would spend 115 billion Japanese yen (US$728 million) through its subsidiary Lin Yin International Investment Co. to acquire the stake in Mitsubishi Electric Mobility.

Hon Hai said the transaction is subject to the fulfillment of contractual conditions, including obtaining the necessary approvals and clearances from relevant authorities under antitrust laws and other applicable laws and regulations.

The company expects the transaction to be completed on Oct. 1, 2027, it added.

After the transaction, Hon Hai and Mitsubishi Electric will jointly run Mitsubishi Electric Mobility, the Taiwanese company cited the agreement as saying.

"The joint-operating arrangement will combine Mitsubishi Electric Mobility's technological and developmental capabilities, particularly in electric powertrains, software and vehicle control, with Hon Hai Precision Industry's speed, scale and other strengths in market deployment," Hon Hai said in the statement.

Over the medium to long term, the partners aim to bring Japanese technology and quality to global markets, further enhance the value of "Made in/by Japan," and demonstrate new possibilities for Japanese manufacturing to the world, Hon Hai said.

In recent years, Hon Hai has aggressively diversified its business under its "3 plus 3" strategy, expanding into integrated hardware and software solutions.

The strategy focuses on three emerging industries -- electric vehicles, robotics and digital health care -- supported by three core technologies: artificial intelligence, semiconductors and communications. Electric vehicles remain a key focus of the company's business development.

(By Chung Jung-feng and Frances Huang)

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