Nidec plans to sell Nidec Components, its electronic components subsidiary, and has entered final negotiations with U.S. private equity firm The Carlyle Group. The sale price is expected to exceed ¥100 billion, signaling a shift in the M&A strategy pursued by founder Shigenobu Nagamori (永守 重信).
Nidec has finalized its policy of selling Nidec Components, its electronic components subsidiary formerly known as Copal Electronics, and was reported to have entered final negotiations with The Carlyle Group on the 29th. The sale price is expected to exceed ¥100 billion, and this is expected to be the first sale of a major subsidiary.
The sale is seen as potentially marking a shift away from the M&A-led expansion strategy pursued by founder Shigenobu Nagamori (永守 重信). The group is expected to proceed with the streamlining and rebuilding of its companies, amid a reorganization of its automotive components business and the expected recognition of substantial impairment losses stemming from accounting fraud.