Mitsubishi Corp. recently announced the completion of its merger with a leading automotive parts manufacturer, signaling the conglomerate’s latest foray into the mergers and acquisitions (M&A) landscape.
The move was made in response to a growing trend of consolidation in the automotive sector, and will see Mitsubishi Corp. become the majority shareholder in the newly-merged entity, which has been christened Mitsubishi Automotive Components.
The merger is the latest example of Mitsubishi’s proactive approach to M&A and follows a series of other acquisitions made by the company in the last few years. In 2015, it acquired a majority stake in a Japanese plant engineering and construction firm and, in 2016, it took over a US-based automotive parts supplier.
Mitsubishi has been steadily expanding its M&A presence as it seeks to diversify its product portfolio and increase its market share. The company’s CEO, Tetsuro Toyoda, commented: “We are always looking for opportunities to grow our business, and the automotive sector is a key area of focus for us. The merger with this leading automotive parts manufacturer is the latest step in our strategy to build a robust and diversified portfolio of products and services.”
The new entity, Mitsubishi Automotive Components, will have a presence in more than 30 countries and will focus on producing high-tech automotive components for the global market.
It is anticipated that the merger will result in cost savings for Mitsubishi, as well as increased efficiency and economies of scale. Moreover, the company will be able to leverage the expertise and resources of its newly-acquired partner to develop and produce innovative automotive parts.
The move is the latest example of the Japanese conglomerate’s growing presence in the M&A arena, and is likely to be followed by further acquisitions as it continues to expand its reach into new markets and product categories.