TOKYO (Reuters) – Hitachi Ltd (6501.T) unit Hitachi Automotive Systems and three Honda Motor Co (7267.T) -affiliated suppliers plan to merge in what will create Japan’s third-biggest auto parts supplier by sales, the Yomiuri newspaper reported on Wednesday.
Hitachi will be the majority shareholder in the new company, under which Hitachi Automotive Systems will be merged with Keihin Corp (7251.T), Showa Corp (7274.T) and Nissin Kogyo Co (7230.T), the Yomiuri said. Honda will also be a shareholder, the newspaper said.
Hitachi and Honda plan to announce the move on Wednesday, the paper added without saying where it got the information.
A Honda spokesman said the automaker was not the source of the report, without elaborating. A Hitachi spokesman said the company is considering ways to raise its corporate value but nothing has been decided.
Reporting by Miwa Sasaki, Chris Gallagher, Makiko Yamazaki, Maki Shiraki; Editing by Himani Sarkar