KYOTO, Japan, Nov. 14, 2006 (PRIMEZONE) -- Nidec Corporation ("Nidec") (NYSE:NJ), Tokyo Stock Exchange (Code:6594) announced today that it had executed a definitive agreement with Valeo S.A. ("Valeo") in relation to the sale of Valeo's Motors & Actuators business ("VMA business") to Nidec for approximately 165 million euros (approximately 25 billion yen).
Rationale for the transaction
Nidec believes that the acquisition of the VMA business, which is highly recognized in the in-car motor market, will enable it to further strengthen the Nidec group and increase its enterprise value, especially as a result of the following:
(1) Acquisition of a business channel in the automotive industry
Unlike industries such as IT (Information Technology), we
believe that in the automotive industry, a proven track record
is highly valued in addition to technology and quality of
products. Since the VMA business is highly recognized with a
proven track record in the in-car motors market, we believe
this acquisition will enable us to leverage this position and
utilize our time and resources efficiently to focus on
enhancing business performance.
(2) Integration of significant numbers of in-car motors engineers
The VMA business has significant numbers of highly
experienced in-car motors engineers. Since it would be
extremely difficult to retain the equivalent number of
engineers within Japan, we are expecting that the acquisition
of the VMA business will provide the Nidec group with a firm
human resource infrastructure to support our entry into the
global in-car motors market.
(3) Extension of international operations
The VMA business has international operations in regions
including Europe, North America and China. The contemplated
acquisition will provide Nidec, which has operation mainly in
Asia, with in-car motor business operations in every major
region of the world, which will allow Nidec to cater its
customers' global operations.
Please visit our website for more information.
http://www.nidec.co.jp/english/ir/indexdata_e/2006/1115.pdf
The Nidec Corporation logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1734