Joyson hopes to take over Japanese airbag maker
July 3, 2017 Category Automotive, Weekly
Chinese automotive parts maker Ningbo Joyson Electronics hopes to take over debt-ridden Japanese airbag maker Takata Corp, which is currently filing the largest bankruptcy case in Japan’s manufacturing history. Shanghai-listed Joyson announced that its wholly-owned subsidiary KSS Holdings had signed a memorandum of understanding (MoU) with Takata to acquire the latter’s assets, excluding its ammonium nitrate propellant business. The transaction is estimated at around USD1.59 billion. The deal is still subject to due diligence, negotiations, and the approval of the world’s 14 leading vehicle manufacturers and Takata’s bankruptcy commissioner. Founded in the 1930s as a textile maker, Takata started producing seat belts for Japanese automakers in 1960. In January, Takata admitted to concealing potentially fatal risks from its exploding airbags due to the ammonium nitrate inside for about 15 years. The faulty airbag inflaters are linked with at least 17 deaths and 100 injuries worldwide. The number of cars recalled has now reached more than 100 million globally, including models from Honda, Ford and Volkswagen. Takata filed for Chapter 11 bankruptcy in the U.S. state of Delaware, listing more than USD10 billion in liabilities. The Tokyo Stock Exchange said that Takata will be delisted on July 27. Established in 2004, Joyson Electronics acquired KSS for USD920 million in 2016, which helped Joyson’s income surge by 129.5% in fiscal year 2016. It also acquired German automotive information system provider TechniSat Digital for €million in the same year, and in 2011, it acquired German automotive parts company Preh, the China Daily reports.
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