KYOTO, Japan, Oct. 20, 2006 (PRIMEZONE) -- Nidec Corporation ("Nidec") and Valeo S.A. ("Valeo") have entered into a Memorandum of Understanding ("MOU") regarding the sale of the motors & actuators business of Valeo ("VMA business").
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.
Valeo's VMA business has achieved high recognition in the in-car motor market and has a wide range of products and customer portfolios. Nidec believes that combining this business with Nidec's world leading brushless technologies will further enhance Nidec's market position. Nidec expects that the acquisitions contemplated by the MOU will have a positive impact on the growth of Nidec's in-car motor business.
Moreover, Valeo's 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 to its customers' global operations.
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.
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http://www.nidec.co.jp/english/ir/index.html
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Special Note Regarding Forward-looking Statements
This notice contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our business and industry, the business and industry of the assets and business we propose to acquire and capital markets around the world. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements are those which discuss future expectations, strategies or projections of results of operations or financial condition or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. Important risks and factors that could cause our actual results to be materially different from our expectations include, but are not limited to: whether the proposed acquisition discussed herein is actually consummated by us and the final terms thereof, which have not been agreed; our ability upon any such acquisition to improve the results of operations of the acquired business and successfully integrate it into our existing businesses; abrupt changes in customers' market position; general economic conditions in the automotive industry and related product markets; exchange rate fluctuations, particularly between the Japanese yen and the Euro and U.S. dollar; adverse changes in laws, regulations or economic policies in any of the countries where we or the business we seek to acquire, as discussed herein, operate; and any negative impacts on such businesses from outbreaks of diseases in such countries, including outbreaks of avian flu.