Hitachi Ltd. said Thursday it will make affiliated automobile parts maker Unisia Jecs Corp. a wholly owned subsidiary Oct. 1 to strengthen its auto equipment business.
Nissan Motor Co. is the largest shareholder in Unisia Jecs with an equity stake of 25.3 percent. Hitachi has a 16.7 percent stake.
The comprehensive maker of electronic and electrical equipment said it will convert Unisia Jecs into a subsidiary through a stock swap in which 0.197 share of Hitachi will be allocated for each Unisia Jecs share.
Unisia Jecs will be delisted from the first section of the Tokyo Stock Exchange on Sept. 25 and will change its name to Hitachi-Unisia Automotive Ltd. for the conversion.
Hitachi said it will use Unisia Jecs’ technology to promote its operations in intelligent transport systems and other automobile-related equipment.
Nissan issued a statement welcoming the latest deal, which will enable it to hold some 7.64 million shares in Hitachi.
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