Nippon Seiki to Acquire DENSO's Head-Up Display Business, Advancing Global Consolidation

Nippon Seiki has entered into an agreement to acquire DENSO's HUD business, covering its development, manufacturing and sales operations. The relevant regions are Japan, China, Spain, the United States and Mexico, and completion of the business transfer is scheduled for 26 February 2027.

HUDs are devices that project driving information, such as vehicle speed, navigation instructions, fuel levels and traffic-sign recognition, onto the windshield. The sector is regarded as one in which HUDs are increasingly becoming standard equipment in modern vehicles. Nippon Seiki has indicated that it intends to strengthen its production and supply capabilities in this area.

Under the terms of the agreement, production equipment and related intellectual property rights will be transferred to Nippon Seiki, while DENSO group officers and employees, land and buildings will be excluded from the transaction. The transfer of customer relationships will proceed in stages, subject to individual customer consent, and production sites will also be transferred to Nippon Seiki sequentially. During the transition period, manufacturing will be outsourced to DENSO.

The carrying value of the assets concerned was ¥1.164 billion as of the end of March 2026. The acquisition price has not been disclosed, but is expected to be less than 1% of Nippon Seiki's consolidated net assets. Payment will be made in cash from the company's own funds, and completion requires approval from the relevant regulatory authorities, including the Japan Fair Trade Commission, as well as customer consent.

DENSO has indicated that it intends to contribute to the development of the automotive industry by focusing resources on its core businesses while entrusting the expansion of its HUD operations to a specialist company. The transaction forms part of the broader consolidation of global component supply.