News
Business Reorganization (Merger) with a Consolidated Subsidiary
Oct. 31, 2024
News Release
AISIN CORPORATION (“AISIN”) hereby announces that it has signed a Memorandum of Understanding today to merge its consolidated subsidiary Aisin Chemical Co., Ltd. (“Aisin Chemical”) into AISIN (the “Merger”).
The environment surrounding the automotive industry is changing dramatically, with a trend toward carbon neutrality and electrified, intelligent mobility accelerating further. Particularly with regard to the electrification of automobiles, BEVs are drastically changing the value chain of the entire industry, including vehicle structure, value sought by users, and supply chains.
To turn these environmental changes into business opportunities, AISIN has positioned businesses that solve social issues as a growth area and is transforming its business portfolio. To achieve this transformation, AISIN will aim to optimize the allocation and utilization of resources throughout the Group by steering the Group from branch management to group management and by further strengthening and expanding growth areas.
Aisin Chemical has been engaged in multiple business areas, including chemical products, friction materials, and plastic parts for automobiles, some of which overlap with the businesses of companies within the Group. In order to grow efficiently as a group while quickly leveraging the strengths of each business area, we have decided to integrate the company with AISIN and reorganize our business areas.
By unifying Aisin Chemical and AISIN through the Merger, the allocation and utilization of management resources will be optimized, thereby enhancing management efficiency within the AISIN Group’s growth strategy.
1.Outline of Merger
(1) Merger schedule | |
Date of resolution by Board of Directors | October 31, 2024 |
Date of contract | TBD |
Date of merger | April 1, 2025 (scheduled) |
(2) Method of merger | |
Aisin Chemical will repurchases all of its shares held by companies other than AISIN as treasury stock, which makes Aisin Chemical a wholly owned subsidiary of AISIN, and then AISIN and Aisin Chemical will merge.(with AISIN as the surviving company). | |
2.Outline of merging companies
Company name | AISIN CORPORATION | Aisin Chemical Co., Ltd. |
Head office address | 2-1 Asahi-machi, Kariya, Aichi | 1141-1 Okawagahara, |
Established | August 1965 | February 1952 |
Capital | 45,049 million yen | 2,118 million yen |
Representative | Moritaka Yoshida, President | Takatora Sugiura, President |
Number of employees | 35,099 (as of March 31, 2024) | 1,032 (as of March 31, 2024) |
Businesses | Manufacturing and sale of automotive parts and energy solution-related products | Development, manufacturing and sale of chemical products, friction materials and plastic parts for automobiles |
3.Future Outlook
This Business Reorganization has no significant impact on the consolidated financial results. We will promptly notify you of any matters that need to be disclosed in the future.