Mitsubishi Electric has agreed to sell a 50% stake in its automotive equipment subsidiary, Mitsubishi Electric Mobility, to Hon Hai Precision Industry, the Taiwanese group better known as Foxconn, for an expected ¥115bn (about US$728m), the Japanese company said on 16 October.
Why Hon Hai Precision Industry (Foxconn) is buying Mitsubishi Electric Mobility (50% stake, from Mitsubishi Electric)
Mitsubishi Electric said the partnership will combine Mitsubishi Electric Mobility's technology and development capabilities in electric powertrains, software and controls with Hon Hai's speed, scale and strength in bringing products to market, in order to supply high-quality Japanese EV platforms. Hon Hai said the deal fits its strategy, in which electric vehicles are a core focus.
Deal terms and financing
Lin Yin International Investment, a wholly owned Hon Hai investment company, will buy 503 of 1,006 shares in Mitsubishi Electric Mobility. The parties agreed an enterprise value of ¥320bn and, after adjusting for changes in assets since signing, an equity value of ¥230bn; the ¥115bn price is the 50% share of that equity value. Before completion, Mitsubishi Electric will transfer its remaining automotive equipment rights and obligations to the unit through an absorption-type company split.
Regulatory approvals and timing
The transaction is conditional on approvals under competition laws in Japan and other jurisdictions. The company split and share transfer are scheduled to take effect in October 2027, after which Mitsubishi Electric Mobility will become an equity-method affiliate of Mitsubishi Electric from the year to March 2028.
Market context
The two companies signed a memorandum of understanding on 24 April 2026 to study a strategic partnership through joint operation of the business. The automotive equipment business had sales of ¥875.6bn in the year to March 2026. Mitsubishi Electric said it expects to record an impairment loss of about ¥100bn in connection with the sale and will update its full-year forecast on 30 October.
