Nidec Sankyo to Acquire Mitsubishi Materials CMI Corporation from Mitsubishi Materials Corporation
Nidec Corporation (NYSE: NJ) today announced that one of its wholly owned subsidiaries, Nidec Sankyo Corporation ("Nidec Sankyo"), has agreed to purchase all of the shares of common stock of Mitsubishi Materials C.M.I. Corporation ("CMI") from Mitsubishi Materials Corporation ("Mitsubishi Materials") (the "Transaction"). Nidec Sankyo and Mitsubishi Materials have entered into a basic agreement in connection with the Transaction as of September 26, 2013.
1. Objectives of the Transaction
As a member of the Nidec Group, Nidec Sankyo has been seeking opportunities to acquire businesses as part of its growth strategy, and has been endeavoring to grow and expand each of its major business lines with an M&A strategy tailored for each such business line. As part of these strategic efforts, in October 2012, Nidec Sankyo made an investment in SCD Co., Ltd., a South Korean manufacturer of motor drive units for home electric appliances, to make SCD a subsidiary with an aim to enhance its product portfolio, and has sought to strengthen its home appliance and residential and facility equipment businesses. The contemplated acquisition of CMI is intended to strengthen Nidec Sankyo's automotive product business and, if completed as planned, will be the