Notice About the Share Transfer of OMRON Automotive Electronics Co., Ltd.

KYOTO, Japan–(BUSINESS WIRE)–OMRON Corporation announces that the Omron Corporation Board of
Directors meeting held today approved a resolution to transfer all of
OMRON’s shares in OMRON Automotive Electronics Co., Ltd. (“OAE”) to
Nidec Corporation (“Nidec”) and a definitive agreement. This share
transfer (the “Share Transfer”) will be executed after obtaining
necessary approval and satisfying other conditions. It is projected to
occur by the end of October.

OAE started its business in 1983 as an automotive electronics components
division of OMRON Corporation (which was then OMRON Tateisi Electronics
) and since then it has contributed to the development of the automotive
industry by developing the world’s first infrared keyless entry system
and electric power steering system. In 2010, OAE was split from OMRON
and became its wholly-owned subsidiary and today, with four core
businesses comprising body control systems, motor control systems,
active safety systems and power control systems, OAE serves the needs of
consumers and society.

Presently, with the technological innovation known as “CASE (Connected,
Autonomous, Shared and Electric)” and the evolution of the business
model in the background, the automotive and the automotive components
industry have commenced a once-in-a-century transformation and the
structure of these industries has begun to change incredibly. In order
for OAE to take advantage of this transformation and develop with it,
OAE not only needs to strengthen its existing business (body electronic
components and motor control systems) and expand them globally, but it
must also further develop technology and products that can be adapted to
the new mobile society anticipated to result from CASE. In particular,
in order to remain competitive against other strong suppliers, including
mega-suppliers in the CASE market, it is indispensable for OAE to make
investments on a much larger scale than before in terms of quality and
quantity.

In order for OAE to continue to address the social issues in the
automobile industry in the future as an independent automotive
electronics components manufacturer in such a drastically changing
environment, we determined that we must create new and greater value by
facilitating the merger of OAE’s renowned control technology and
products with the synergistic technology and products of another
company. Specifically, we concluded that the best option for OAE is to
accelerate its business together with other companies that define the
automotive components as a field of growth, have the investment appetite
and capacity, and have solid technology and products in the CASE field.

Nidec is one of the world’s leading motor manufacturing companies,
places the automotive motor business as one of its strategically
material businesses, and has been expanding its business through various
investments. Through the Share Transfer, we can expect further growth
through substantial synergy effects, such as development of value-added
products by combining Nidec’s motor and OAE’s control technologies, and
function enhancement by mutually utilizing both companies’ customer
bases and global manufacturing capacities.

As stated above, we believe that the Share Transfer will deliver greater
value to customers, the automotive industry and society as well as to
OAE and its employees. OMRON will concentrate its management resources
through portfolio management addressed in ROIC management, and achieve
development of the control device business and healthcare business that
it particularly emphasizes.

 

About OAE

Company Name   OMRON Automotive Electronics Co. Ltd.
Location 6368 Nenjozaka, Okusa, Komaki City, Aichi Prefecture
Representative Katsuhiro Wada, President & CEO
Description of business Sales, development, and manufacture of a wide variety of automotive
electronics.
Capital 5 billion JPY
Date of Foundation May 6, 2010
Major Shareholders OMRON Corporation (100.0%)
Sales 36 billion JPY in fiscal 2017, (March 31, 2018)

Number of employees
(consolidated)

  5,715(as of March 2019)

For further information, please see: https://www.automotive.omron.com/oae.php

 

About Nidec

Company Name   Nidec Corporation
Location 338 Kuzetonoshiro-cho, Minami-ku, Kyoto 601-8205, JAPAN
Representative Shigenobu Nagamori, Founder, Chairman and CEO
Description of business Development, manufacturing, and sales of small precision motors,
automotive motors, home appliance motors, commercial and industrial
motors, motors for machinery, electronic and optical components, and
other related products.
Capital 88 billion JPY
Date of foundation   July 23, 1973

For further information please see: https://www.nidec.com/en-NA/corporate/about/outline/

About OMRON Corporation

OMRON Corporation is a global leader in the field of automation based on
its core technology of “Sensing & Control + Think”. OMRON’s business
fields cover a broad spectrum, ranging from industrial automation and
electronic components to automotive electronic components, social
infrastructure systems, healthcare, and environmental solutions.
Established in 1933, OMRON has over 36,000 employees worldwide, working
to provide products and services in 117 countries. For more information,
visit OMRON’s website at: https://www.omron.com/.

Contacts

Contact (media):
Brand Communications Department
OMRON
Corporation
Kazunori Yasui / Kanako Kimura
Tel: +81-75-344-7175
or
Edelman
Julia
Sahin, +1-212.738.6131