Nidec Signs a MOU for the Acquisition of Valeo S.A. France
biz.yahoo.com
Friday October 20, 2:30 am ET
Motors & Actuators Business to Strengthen Its In-Car Electric Motor Business
KYOTO, Japan, Oct. 20, 2006 (PRIMEZONE) -- Nidec Corporation (``Nidec'') and Valeo S.A. (``Valeo'') have entered into a Memorandum of Understanding (``MOU'') regarding the sale of the motors & actuators business of Valeo (``VMA business'').
Nidec has focused on expanding its motor business as a core business strategy, and has expanded its in-car motor business, as well as its business for small precision motors mainly used in IT devices. Nidec believes that the most effective way to compete in such business is to acquire a business with a favorable historical performance, because it takes time to develop production capacity for in-car motors and distribution channels for such products to Tier 1 customers.
Valeo's VMA business has achieved high recognition in the in-car motor market and has a wide range of products and customer portfolios. Nidec believes that combining this business with Nidec's world leading brushless technologies will further enhance Nidec's market position. Nidec expects that the acquisitions contemplated by the MOU will have a positive impact on the growth of Nidec's in-car motor business.
Moreover, Valeo's VMA business has international operations in regions including Europe, North America and China. The contemplated acquisition will provide Nidec, which has operation mainly in Asia, with in-car motor business operations in every major region of the world, which will allow Nidec to cater to its customers' global operations. |
