Mitsubishi Electric and Hon Hai have reached a definitive agreement on a strategic partnership to develop next-generation mobility. Mitsubishi Electric will transfer 50% of Mitsubishi Electric Mobility's shares to Lin Yin and begin joint operations.
Mitsubishi Electric and Lin Yin International Investment Co., Ltd., Hon Hai's investment management company, have signed a definitive agreement for a strategic partnership focused on developing next-generation mobility to support the sustainable growth of Japan's automotive industry, based on joint operation. Mitsubishi Electric will transfer 50% of the shares of Mitsubishi Electric Mobility, which operates the automotive equipment business, to Lin Yin, establishing a joint operating structure for the two companies.
The transfer price is expected to be ¥115 billion, and the enterprise value of the business has been calculated at ¥320 billion. Based on changes in assets following the signing of the agreement, the equity value was calculated and agreed at ¥230 billion. The transaction is expected to be completed in October 2027, subject to the satisfaction of the required conditions, including obtaining approvals under competition law and other applicable laws and regulations.
Through joint operations, the companies aim to combine Mitsubishi Electric Mobility's electric powertrain, software and control technologies with Hon Hai's market development capabilities to promote and advance high-quality, Japan-developed EV platforms. Over the medium to long term, they also indicated a policy of bringing Japan-developed technologies and quality to global markets.