Nidec to buy precision motor business from Sanyo

Nidec to buy precision motor business from Sanyo
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First Published: Thu, Dec 09 2010. 02 22 PM IST
Updated: Thu, Dec 09 2010. 02 22 PM IST
Tokyo: Japanese motor maker Nidec Corp said it would buy Sanyo Electric’s mini precision motor business, in a deal reportedly worth $83 million.
It marks the latest in a string of acquisitions by Nidec, which this year agreed to buy two of Emerson Electric’s motors businesses and is aiming to lift sales by 70% to ¥1 trillion ($11.9 billion) in three-year.
Nidec said it has agreed to buy all the shares of Sanyo Seimitsu Co, which is strong in producing vibrating motors for mobile phones.
Nidec did not disclose financial terms but the Nikkei business daily reported earlier that it would pay around ¥7 billion ($83 million) for the business.
Sanyo, which is due to be taken over by Panasonic Corp in April, is shedding some of its non-core businesses to focus on its environmental technologies, such as rechargeable batteries and solar panels.
In June Sanyo said it would sell its loss-making semiconductor unit to Arizona-based ON Semiconductor for about ¥33 billion.
On Thursday Sanyo said it now expects to post a net loss of ¥25 billion ($298 million) for the financial year ending in March, instead of its previously estimated ¥5 billion profit after it revised terms of the deal with ON Semiconductor.
Shares in Nidec fell 1.1% to ¥8,740. Sanyo closed unchanged at ¥137 and Panasonic rose 0.3% to ¥1,194. The benchmark Nikkei average gained 0.5%.
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First Published: Thu, Dec 09 2010. 02 22 PM IST