Link: https://eletric-vehicles.com/mitsubishi/foxconn-to-buy-half-of-mitsubishi-electrics-car-unit-for-115-billion-yen/

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Hon Hai Precision Industry, the Taiwanese manufacturer known as Foxconn, has agreed to buy 50% of Mitsubishi Electric’s automotive equipment unit for 115 billion yen ($727.8 million),

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The agreement values the business at an enterprise value of 320 billion yen ($2.03 billion) and an equity value of 230 billion yen ($1.46 billion), and the 115 billion yen price corresponds to half of that equity value.

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The companies said the joint operation would combine Mitsubishi Electric Mobility’s capabilities “particularly in electric powertrains, software and vehicle control” with Hon Hai’s “speed, scale and other strengths in market deployment.”

By providing high-quality electric vehicle platforms “developed in Japan,” they said they expected to contribute to the wider adoption of next-generation mobility.

“Over the medium to long term, the companies aim to expand Japanese technology and quality to global markets as well as further enhance the value of ‘Made in/by Japan,'” they said.

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The two companies set a goal of lifting Mitsubishi Electric Mobility’s revenue to 1 trillion yen ($6.33 billion) in the fiscal year starting April 2030, at a press conference in Tokyo on Monday.

That would be 22% above the 820 billion yen ($5.19 billion) the unit expects for the current fiscal year.

“The most attractive thing is the electronic control technology, and its software technology is also abundant,” said Jun Seki, Chief Strategy Officer of Hon Hai’s electric vehicle business, who attended alongside Mitsubishi Electric Mobility President Kazunori Tanaka.

“We want to make Mitsubishi Electric our anchor in Japan and team up with other parts makers and automakers,” Seki said.

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