Major auto components maker Samvardhana Motherson International on Tuesday said it will acquire an 81 per cent stake in the four-wheeler business of Yachiyo Industry, a Honda Motor (Japan) subsidiary, for a cash consideration of around $120 million.
Motherson will form an 81:19 strategic partnership with Honda Motor where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies, the company said in a statement.
Yachiyo Industry is a publicly listed (Tokyo Stock Exchange) subsidiary of Honda Motor which comprises four-wheeler (4W) and two-wheeler (2W) businesses. As a part of the overall transaction, the 2W business (housed under Goshi Giken) will be transferred to Honda Motor before Motherson acquires an 81 per cent stake in Yachiyo’s 4W business, it said.