Honda Motor Co., Ltd. (TSE:7267) agreed to acquire finished car business from Yachiyo Industry Co., Ltd. (JASDAQ:7298) on October 4, 2017. Under the terms, Yachiyo Industry Co., Ltd. announced the decision to conclude a basic agreement with Honda Motor Co., Ltd. concerning the start of negotiations to transfer the finished car business. As on December 18, 2017, the parties concluded the transfer agreement. Yachiyo Industry Co., Ltd. established a successor company, Yachiyo Industry Yokkaichi Seisakusho Co., Ltd., to hold the finished car business. As per the agreement, Honda Motor Co., Ltd. will acquire 9 shares, representing 100% stake in Yachiyo Industry Yokkaichi Seisakusho Co., Ltd., from Yachiyo Industry Co., Ltd. for ¥6.8 billion. Upon completion, the name of Yachiyo Industry Yokkaichi Seisakusho Co., Ltd. will change to Honda Auto Body Co., Ltd. and 100% stake in it will be held by Honda Motor Co., Ltd.

For the financial year ended March 2017, Yachiyo Industry Yokkaichi Seisakusho Co., Ltd. had sales of ¥36.57 billion and total assets of ¥8.95 billion. The Board of Directors of Yachiyo Industry Co., Ltd. resolved the transaction on October 4, 2017. As on December 18, 2017, the Board of Yachiyo Industry Co., Ltd. approved the transaction. Yachiyo Industry Co., Ltd.'s Board of Directors established an independent committee comprising, Katsuya Natori, Shigeru Matsuda and Junjiro Shintaku. Shinichi Yoshiyama will become the Representative Director and President of Yachiyo Industry Yokkaichi Seisakusho Co., Ltd. The transaction is expected to be completed by April 2, 2017. Abe Ikubo & Katayama acted as a legal advisor for Yachiyo Industry Co., Ltd.

Honda Motor Co., Ltd. (TSE:7267) cancelled the acquisition of finished car business from Yachiyo Industry Co., Ltd. (JASDAQ:7298) on October 4, 2018.