Samvardhana Motherson International Limited announced that its board has approved the acquisition of an 81 percent stake in Japan-based Yutaka Giken Co., Ltd. (YGCL) through its wholly owned subsidiary Motherson Global Investments B.V. The company will also acquire an 11 percent stake in YGCL’s subsidiary Shinnichi Kogyo Co., Ltd. from Honda Motor Co., Ltd., and 100 percent of Yutaka Autoparts India Private Limited from YGCL.
The acquisition of YGCL will be completed in multiple stages, subject to merger control approvals in Japan, the United States, China, Brazil and Mexico. The final closing is expected by the first quarter of the financial year 2026–27.
The total cash outflow for the 81 percent stake in YGCL is expected to be about JPY 27 billion (approximately USD 184 million). YGCL is currently debt free. Following the completion of all steps, Honda Motor Co., Ltd. will retain a 19 percent shareholding in YGCL on a voting rights basis.
For the financial year 2024–25, YGCL reported turnover of approximately JPY 179 billion (around USD 1.2 billion). In the previous two years, turnover was JPY 490 billion (USD 3.3 billion) in FY 2023–24 and JPY 486 billion (USD 3.2 billion) in FY 2022–23.
Founded in 1954, YGCL manufactures metal components and assemblies including rotors and stator assemblies for motors, drive systems, brake systems and thermal management systems. The company has 13 manufacturing facilities and one research and development centre in nine countries, including Japan, China, the United States, Thailand, Brazil, India, Indonesia, Mexico and the Philippines.
The transaction is expected to further strengthen the company’s global partnership with Honda and help expand share of business with Japanese OEMs. It would also enable the company to potentially cross-sell YGCL’s existing product portfolio to other OEMs especially in emerging markets.
Samvardhana Motherson International Limited is headquartered in Noida, India. It operates globally through its subsidiaries across automotive and related industries.