Japanese auto-component giant JTEKT Corp, the world’s biggest supplier of steering systems is looking to consolidate its presence in the Indian auto component market and has initiated talks to hike its existing stake in the listed flagship company of Sona Group, Sona Koyo Steering SystemsBSE 3.73 % Limited, sources familiar with ongoing negotiations told ET NOW on the condition of anonymity. ET NOW was the first to report the story.
” Currently, JTEKT Corp holds around 20% stake and they are now in talks with Sona Koyo Steerings Systems to raise this holding to a significant majority stake. Due diligence is underway on this proposed transaction,” said one of the sources.
In response to an email query from ET NOW, Sona Group responded saying , “As a matter of corporate policy, we do not comment on rumor or speculation in the market”. ET NOW is awaiting responses to email queries sent to JTEKT Corp.
JTEKT Corporation was established in January 2006 through the merger of bearing manufacturer Koyo Seiko Co., Ltd and Toyoda Machine Works, Ltd., a machine tool manufacturer. JTEKT is the first steering manufacturer to develop electric and hydroelectric power steering systems and is headquartered in Nagoya, Japan. It employs more than 43,000 people in 27 countries and reported sales of $12.6 billion in 2013 according to the company website.
Established in 1985, Sona Koyo Steering Systems Ltd caters to passenger cars, utility vehicles and light commercial vehicles. Sona Koyo’s customers include major vehicle manufacturers in India such as Maruti Suzuki, Toyota, Hyundai, Tata Motors, Mahindra & Mahindra, General Motors and Ford. Independently and through its network of overseas joint-venture partners, the company exports precision products to USA, Europe, and Japan according to its website.
Source: Economic Times