Japan’s Nidec Corporation has signed a Memorandum of Understanding for the acquisition of Valeo’s in-car Electrical Motors & Actuators business.
The Motors & Actuators business produces engine cooling-fan systems and electric motors of more than 50 watts applied in a variety of systems: ventilation, power steering, ABS, seat adjustment, sunroofs, electric windows and sliding doors. It does not include the micro-hybrid Starter-Alternator Reversible System (StARS) product, which is part of another one of Valeo’s 13 product families. (Earlier post).
Nidec has focused on expanding its motor business as a core business strategy, and has expanded its in-car motor business, as well as its business for small precision motors mainly used in IT devices.
Nidec believes that the most effective way to compete in such business is to acquire a business with a favorable historical performance, because it takes time to develop production capacity for in-car motors and distribution channels for such products to Tier 1 customers.
Definitive documentation regarding the proposed transaction is expected to be entered into by the parties after completion of the consultation process with Valeo’s workers’ committee mandated under French law, which is targeted for mid-November of this year.
In May, Nidec announced that it plans to start mass-producing electric motors for hybrid vehicles in 2008 or 2009. The company has already begun developing hybrid-vehicle electric motors with outputs of 10 kW or greater in its mid-size motors business segment. (Earlier post.)