Samvardhana Motherson International Limited (SAMIL), one of India’s largest auto component manufacturers, has announced a significant global acquisition move aimed at expanding its reach and strengthening its presence in the global automobile industry. On August 29, 2025, the company’s Board of Directors approved the acquisition of an 81% stake in Yutaka Giken Co., Ltd. (YGCL), a listed Japanese company, and an 11% stake in Shinnichi Kogyo Co., Ltd., a subsidiary of YGCL. Additionally, SAMIL will also acquire 100% ownership of Yutaka Autoparts India Private Limited.

This acquisition will be executed through Motherson Global Investments B.V. (MGI BV), the company’s indirect wholly owned subsidiary. Yutaka Giken, incorporated in Japan in 1954 and listed on the Tokyo Stock Exchange, is engaged in the production of metal components and assemblies, including rotors, stator assemblies, drive systems, brake systems, and thermal management systems. With operations across nine countries and multiple manufacturing and R&D facilities, Yutaka Giken generated a turnover of approximately JPY 179 billion (USD 1.2 billion) in FY 2024-25.

The acquisition is significant because Honda Motor Co. Ltd., which currently holds a 69.66% stake in Yutaka Giken, will retain a 19% shareholding post-transaction, while Motherson will become the majority shareholder with 81% control. The transaction also includes acquiring 11% stake in Shinnichi Kogyo from Honda, ensuring Motherson’s presence in a critical part of the Japanese auto components sector.

The deal structure involves multiple steps, including regulatory approvals from Japan, United States, China, Brazil, and Mexico, followed by a tender offer process and subsequent share purchase agreements. The final completion is expected by Q1 of FY 2026-27, subject to necessary clearances.

The total expected cash outflow for the acquisition of 81% stake in Yutaka Giken is approximately JPY 27 billion (USD 184 million), with the transaction being conducted on a cash consideration basis. Importantly, Yutaka Giken is a debt-free company, which makes the acquisition more attractive.

This move is in line with Motherson’s global expansion strategy. The acquisition not only strengthens its partnership with Honda but also opens up opportunities to cross-sell Yutaka’s product portfolio to other original equipment manufacturers (OEMs), especially in emerging markets. The deal will further reinforce Motherson’s capabilities in motor assemblies, drive systems, braking systems, and thermal management technologies.

With Yutaka Giken’s presence in Japan, China, the United States, Thailand, Brazil, India, Indonesia, Mexico, and the Philippines, this acquisition strategically expands Motherson’s global footprint. It also highlights India’s growing role in the international automotive components sector, with Motherson positioning itself as a global leader in the automobile supply chain.

The acquisition is expected to boost Motherson’s revenue streams, enhance its technological base, and strengthen its customer relationships with Japanese automakers. Moreover, the inclusion of Yutaka Autoparts India Private Limited into Motherson’s portfolio will deepen its manufacturing presence in India, enabling the company to support both domestic and international demand more efficiently.

Industry experts believe that this deal is a transformational step for Samvardhana Motherson, as it not only secures long-term partnerships with leading global OEMs but also diversifies its product offerings in critical automotive technologies. With the auto industry evolving rapidly towards advanced drive systems and efficient thermal management, Motherson’s acquisition of Yutaka Giken and Shinnichi Kogyo places it in a stronger position to lead innovation in these areas.

The move also comes at a time when the global auto industry is undergoing significant changes due to electrification, sustainability demands, and technological advancements. Motherson’s expansion through this acquisition is expected to align perfectly with these industry trends, giving it a competitive edge.

Overall, the acquisition of 81% stake in Yutaka Giken, 11% in Shinnichi Kogyo, and 100% in Yutaka Autoparts India demonstrates Motherson’s commitment to scaling its global operations, strengthening partnerships, and delivering high-value products to automakers across the world. This strategic step marks a new chapter in Motherson’s growth journey as it aims to become one of the world’s leading automotive component suppliers.

The Upcoming IPOs in this week and coming weeks are Goel Construction Company, Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Oval Projects, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, .

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.