Auto components major Samvardhana Motherson International Ltd on Friday announced the acquisition of 81 per cent stake in Japan's Yutaka Giken Co, Ltd in which Honda is a majority shareholder, for USD 184 million (over Rs 1,610 crore).
Directors of the company at their meeting held on August 29, 2025, considered and approved to acquire 81 per cent stake with voting rights in Yutaka Giken Co, Ltd (YGCL) and 11 per cent stake in Shinnichi Kogyo Co, Ltd (Shinnichi) through its indirect wholly-owned subsidiary Motherson Global Investments BV (MGI BV), Samvardhana Motherson International Ltd (SAMIL) said in a regulatory filing.
YGCL is a company listed on the Tokyo Stock Exchange, and Honda Motor Co, Ltd (Honda) currently owns a 69.66 per cent stake in it, with the rest owned by the public, the filing added. Post completion of all steps, Honda shall continue to own the remaining 19 per cent voting rights shares in YGCL, SAMIL said.
"The total expected cash outflow for the 81 per cent shareholding is JPY 27 billion (USD 184 million)," it said.
It, however, did not disclose the outgo for the 11 per cent stake in Shinnichi, which is a subsidiary of YGCL with 62 per cent ownership.
YGCL is engaged in the production of metal components and assemblies, including rotors and stator assemblies for motors, drive systems, brake systems and thermal management systems.
As part of the transaction, SAMIL said it will directly or via its wholly-owned subsidiary also acquire 100 per cent of the shares and voting rights in Yutaka Autoparts India Pvt Ltd (Yutaka India).
On the rationale behind the acquisition, SAMIL said, "The transaction would further strengthen the company's global partnership with Honda and help expand the share of business with Japanese OEMs." It would also enable the company to potentially cross-sell target's existing product portfolio to other OEMs, especially in emerging markets, SAMIL added.
The acquisition required regulatory clearances from the authorities of Japan, the United States, China, Brazil and Mexico, the company said, adding subject to satisfactory completion of all conditions, final closing is expected by Q1 FY 26-27.
