Samvardhana Motherson International Limited has informed the exchange regarding approval of the Board of Directors to, inter-alia, acquire 81% stakes with voting rights in Yutaka Giken Co., Ltd.
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Motherson's Board has approved acquiring an 81% controlling stake in Yutaka Giken Co., Ltd. (YGCL), a Japanese auto components maker listed on the Tokyo Stock Exchange, through its Dutch subsidiary MGI BV. The deal also includes an 11% stake in Shinnichi Kogyo Co., Ltd. (a YGCL subsidiary) and 100% of Yutaka Autoparts India Pvt. Ltd. Total cash outflow for the 81% stake is around JPY 27 billion (~USD 184 million), and YGCL is a debt-free company. Honda, which currently owns 69.66% of YGCL, will retain the remaining 19% post-deal. YGCL had a FY25 net turnover of ~JPY 179 billion (~USD 1.2 billion) and operates 13 manufacturing facilities across 9 countries including Japan, US, India, and Mexico. The deal requires merger control approvals from Japan, US, China, Brazil, and Mexico, with closing expected by Q1 FY 26-27. The acquisition strengthens Motherson's partnership with Honda and expands its share of business with Japanese OEMs.
This is a significant, debt-funded strategic acquisition that gives Motherson control of a major Japanese auto components platform, deepening ties with Honda and adding global manufacturing scale. The deal size (USD 184 Mn for 81%) appears reasonable relative to YGCL's USD 1.2 Bn revenue base, which should be viewed positively by shareholders as it expands Motherson's global footprint.