Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) has agreed with Gestamp Automoción, S.L. ("GA", Head Office: Madrid, President and CEO: Francisco Riberas), one of the world's largest manufacturers of automotive components, to acquire up to 30% stake in controlling companies of GA's North and South American operations ("GA's Americas Companies") and entered into definitive agreements on January 4th, 2013.
GA's Americas Companies currently have a total of 15 plants in USA, Mexico, Brazil and Argentina. Subject to regulatory approval by relevant authorities, Mitsui will initially acquire newly issued shares of GA's Americas Companies through a third party allocation of newly issued shares for a 15% stake and also provide convertible loans, for a total amount of investments and loans of approximately €300 million (Approx. JPY 33.0 billion*). After the conversion, Mitsui will ultimately be holding up to 30% shares of GA's Americas Companies.
GA manufactures automotive components including body-in-white, chassis and mechanisms for automotive manufacturers primarily in Europe and the Americas. GA has grown along with automotive manufacturers' global business expansion, and with 98 production plants (including plants under construction), recently GA has become one of the world's largest global automotive parts manufacturers in terms of sales. Furthermore, GA has been contributing to automotive manufacture's efforts for fuel efficiency and safety performance through its world top-class expertise, including hot stamping technology, expected to be adopted by a wide range of automotive manufacturers in Europe and USA.
Global automotive industry is recovering from the impact of the Lehman Shock: with major automotive manufacturers's large scale investments, the automotive market in four countries in the Americas that GA's Americas Companies run businesses (USA, Mexico, Brazil, and Argentina) are envisaged to grow in the medium to long term, with total number of automotive production expected to increase to over 20 million in 2016 from 15 million in 2011, with a compound annual growth rate of approximately 6%.
Mitsui has been enhancing the automotive industry value chain from supply of materials to sale of vehicles. Mitsui will contribute to expand the sales and further growth of enterprise value of GA's Americas Controlling Companies by supporting GA's diversification efforts with Asian automotive manufacturers and the combination of its steel supply network including Steel Technologies Inc., logistics, financing and supply of new materials and will position this joint venture as Mitsui's core business in the automotive value chain, mainly for its steel business.
Overview of the Joint Ventures
||USA, Mexico, Brazil, and Argentina
|Subscription Date of third party allocation
||June, 2013 (expected)
||Mitsui: 30%(*), GA: 70%
||Automotive components manufacturer in Americas
(*) Ultimate shareholding ratio after the convertible loan is converted
Overview of Investment Scheme
Overview of GA
||Gestamp Automoción, S.L.
||Francisco José Riberas Mera, President and CEO
||Automotive components manufacturer (98 plants globally in Europe, Americas and Asia: manufacturing body in white, chassis and mechanisms)
||€ 5,600 million (Approx. JPY 616.0 billion) (2012 Actual)
||EUR 4,672 million (Approx. JPY 531.9 billion) (As of December 2012)
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.