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Notice About the Share Transfer of OMRON Automotive Electronics Co., Ltd.
By: Business Wire
Apr. 16, 2019 02:22 AM
OMRON Corporation announces that the Omron Corporation Board of Directors meeting held today approved a resolution to transfer all of OMRON’s shares in OMRON Automotive Electronics Co., Ltd. (“OAE”) to Nidec Corporation (“Nidec”) and a definitive agreement. This share transfer (the “Share Transfer”) will be executed after obtaining necessary approval and satisfying other conditions. It is projected to occur by the end of October.
OAE started its business in 1983 as an automotive electronics components division of OMRON Corporation (which was then OMRON Tateisi Electronics ) and since then it has contributed to the development of the automotive industry by developing the world’s first infrared keyless entry system and electric power steering system. In 2010, OAE was split from OMRON and became its wholly-owned subsidiary and today, with four core businesses comprising body control systems, motor control systems, active safety systems and power control systems, OAE serves the needs of consumers and society.
Presently, with the technological innovation known as “CASE (Connected, Autonomous, Shared and Electric)” and the evolution of the business model in the background, the automotive and the automotive components industry have commenced a once-in-a-century transformation and the structure of these industries has begun to change incredibly. In order for OAE to take advantage of this transformation and develop with it, OAE not only needs to strengthen its existing business (body electronic components and motor control systems) and expand them globally, but it must also further develop technology and products that can be adapted to the new mobile society anticipated to result from CASE. In particular, in order to remain competitive against other strong suppliers, including mega-suppliers in the CASE market, it is indispensable for OAE to make investments on a much larger scale than before in terms of quality and quantity.
In order for OAE to continue to address the social issues in the automobile industry in the future as an independent automotive electronics components manufacturer in such a drastically changing environment, we determined that we must create new and greater value by facilitating the merger of OAE’s renowned control technology and products with the synergistic technology and products of another company. Specifically, we concluded that the best option for OAE is to accelerate its business together with other companies that define the automotive components as a field of growth, have the investment appetite and capacity, and have solid technology and products in the CASE field.
Nidec is one of the world’s leading motor manufacturing companies, places the automotive motor business as one of its strategically material businesses, and has been expanding its business through various investments. Through the Share Transfer, we can expect further growth through substantial synergy effects, such as development of value-added products by combining Nidec’s motor and OAE’s control technologies, and function enhancement by mutually utilizing both companies’ customer bases and global manufacturing capacities.
As stated above, we believe that the Share Transfer will deliver greater value to customers, the automotive industry and society as well as to OAE and its employees. OMRON will concentrate its management resources through portfolio management addressed in ROIC management, and achieve development of the control device business and healthcare business that it particularly emphasizes.
For further information, please see: https://www.automotive.omron.com/oae.php
For further information please see: https://www.nidec.com/en-NA/corporate/about/outline/
About OMRON Corporation
OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think". OMRON's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Established in 1933, OMRON has over 36,000 employees worldwide, working to provide products and services in 117 countries. For more information, visit OMRON's website at: https://www.omron.com/.
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