Mitsubishi Electric, a major diversified electronics company, announced plans to transfer 50% of the shares of its subsidiary Mitsubishi Electric Mobility, which operates its automotive equipment business, to an investment company under Taiwan's Hon Hai Precision Industry. The transfer price is ¥115 billion and the scheduled transfer date is October 2027. The 2 companies aim to provide platforms for EVs jointly.
Mitsubishi Electric will transfer 50% of the shares of Mitsubishi Electric Mobility, which operates its automotive equipment business, to an investment company under Taiwan's Hon Hai Precision Industry. The transfer price is ¥115 billion and the scheduled transfer date is October 2027. The companies said they aim to provide high-quality EV platforms under a joint operating structure.
In connection with the transfer, Mitsubishi Electric will transfer the rights and obligations relating to its automotive equipment business to Mitsubishi Electric Mobility through an absorption-type company split. Rights and obligations relating to the business held by group companies in Japan and overseas will also be transferred to Mitsubishi Electric Mobility or its subsidiaries. After the transition, Mitsubishi Electric Mobility will transfer half of its shares to the transferee, resulting in a shift to a joint operating structure.
Following the transfer, Mitsubishi Electric Mobility is expected to become an equity-method affiliate from the fiscal year ending March 2028. The transferee is an investment company based in Taiwan, including Lin Yin International Investment Co., Ltd. This is also related to the fact that a strategic partnership with Hon Hai Precision Industry was under consideration in April 2026.
The announcement represents a new development in Mitsubishi Electric's M&A news flow and is viewed as aimed at combining development capabilities and market reach in the EV market.