Samvardhana Motherson Unit To Acquire 95% Stake In Japan's Atsumitec For $57 Million

Samvardhana Motherson International Ltd.'s wholly owned subsidiary, Samvardhana Motherson Automotive Systems Group B.V, will acquire Japan-based company Atsumitec for $57 million. Shares of the company rose over 4% intraday, following the announcement on Friday.

The deal, set to take place in multiple steps, will see Motherson acquire 95% of Atsumitec's shares with voting rights. The remaining 5% will be retained by Honda Motor. 

Atsumitec, which operates across several countries including Japan, Thailand, and the USA, specialises in the production of high-precision machined components for four-wheeler and two-wheeler vehicles, such as gear shifters and transmission parts.

The acquisition is part of Samvardhana Motherson's strategy to expand its share of business with Japanese original equipment manufacturers and diversify its product portfolio. The move will also enhance Motherson's presence in key markets, particularly Vietnam, and provide access to global metal and machining capabilities.

The transaction is subject to merger control clearance from Japanese authorities, with the deal expected to be completed by the first quarter of fiscal 2026, following several regulatory steps, including a share buyback from Honda Motor and the acquisition of Atsumitec's Indonesian unit.

Samvardhana Motherson Share Price

Samvardhana Motherson stock rose as much as 4.53% during the day to Rs 174.57 apiece on the NSE. It was trading 1.76% higher at Rs 169.94 apiece, compared to a 0.05% decline in the benchmark Nifty 50 as of 1:41 p.m. 

It has risen 80.99% in the last 12 months and 66.55% on a year-to-date basis. Total traded volume so far in the day stood at 4.2 times its 30-day average. The relative strength index was at 46.41.

Of the 22 analysts tracking the auto parts manufacturer, 18 have a 'buy' rating on the stock, three recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 13.6%.