Honda Motor Co., Ltd. (TSE:7267) and Nissin Kogyo Co., Ltd. (TSE:7230) entered into definitive agreement to acquire 51% stake in Veoneer-Nissin Brake Systems (Zhongshan) Co., Ltd. from Veoneer AB for $70 million (¥7.6 billion) on October 30, 2019. The consideration will be paid in cash. In a related transaction, Honda Motor Co., Ltd. and Nissin Kogyo Co., Ltd. also entered into definitive agreement to acquire 51% stake in Veoneer Nissin Brake Systems Japan Ltd. Under the transaction, Honda Motor Co., Ltd will acquire 26% stake in Veoneer-Nissin Brake Systems (Zhongshan) Co., Ltd. while Nissin Kogyo Co., Ltd. will acquire additional 25% stake in Veoneer-Nissin Brake Systems (Zhongshan) Co., Ltd., thereby increasing stake to 74%.

For the year ending March 31, 2019, Veoneer-Nissin Brake Systems (Zhongshan) Co., Ltd. had total assets of ¥16.77 billion, sales of ¥13.9 billion and net profit of ¥0.8 billion. The transaction subject to completion of customary closing conditions and approval necessary under the Chinese competition laws. The transaction is expected to close on February 3, 2020.

Randy Laxer of Morrison & Foerster LLP acted as legal advisor to Veoneer Inc, parent of Veoneer AB.