Mitsubishi Electric, Foxconn Enter Strategic Alliance for Automotive Equipment Business
By Ronnie Harui
Mitsubishi Electric and Hon Hai Precision Industry, also known as Foxconn Technology Group, have agreed to form a strategic alliance to jointly operate an automotive-equipment business.
Under the agreement, Mitsubishi Electric will transfer a 50% stake in Mitsubishi Electric Mobility, which handles its automotive-equipment operations, to Lin Yin International Investment, an investment-management subsidiary of Hon Hai, the companies said.
After the stake transfer, the two co-owners will jointly operate Mitsubishi Electric Mobility, they said Friday.
The share transfer price is expected to be 115.00 billion yen, equivalent to US$727.85 million.
The agreement establishes an enterprise value of Y320.0 billion and an equity value of Y230.0 billion for the target business, the companies said. The share transfer is expected to be completed in October 2027, subject to the satisfaction of contractual conditions.
The alliance will seek to develop next-generation mobility and strengthen sustainable growth of Japan's automotive industry. The joint-operating arrangement will combine Mitsubishi Electric Mobility's technological and developmental capabilities with Foxconn's speed, scale and other strengths in market deployment, they said.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
October 18, 2026 22:50 ET (02:50 GMT)
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