JTEKT to sell European automotive business

JTEKT Corporation has reached a basic agreement with LEO III.-VV25-A GmbH, an investment vehicle advised by Munich-based DUBAG Investment Advisory, for the transfer of its automotive business serving European OEMs. The deal covers all shares of seven consolidated subsidiaries engaged in the manufacture and sale of automotive components.

The target companies include JTEKT Europe and JTEKT Column Systems France in France, JTEKT Czech Republic, JTEKT Automotive Morocco, JTEKT Torsen Holdings and JTEKT Torsen Europe in Belgium, and JTEKT Torsen North America in the United States.

The agreement is structured as a put option, with LEO III.-VV25-A GmbH committed to purchase the business including the target companies. Completion is subject to works council consultations at the French subsidiaries, which are compulsory under French law.

The transfer forms part of JTEKT’s second medium-term management plan running from fiscal year 2024 through 2026, under which the supplier is restructuring its global operations. JTEKT said it aims to become profitable in Europe by restructuring and consolidating its businesses. The company added that it will continue to optimise its strategies and business structure according to the market environment in each region.

Source: JTEKT