Leading global mobility supplier DENSO has reached an agreement to transfer its fuel pump module business to Aisan Industry, a major powertrain supplier.
In addition, DENSO’s board also agreed to allow Aisan to acquire DENSO’s equity stake in Kyosan DENSO Manufacturing Kentucky, LLC (KDMK), located in Mt Sterling in Kentucky, United States. The transfer is estimated to be on August 1, 2022.
This business transfer is subject to approval from the antitrust authorities in the relevant countries and regions.
It was on May 20, 2019 that the two companies had reached a basic agreement to begin studying the possibility of strengthening their competitiveness in powertrain and future growth areas. As a result of the study, the companies agreed that DENSO, the $44.6 billion global major, will transfer its entire business of developing, producing, and selling fuel pump modules to Aisan, and Aisan will acquire DENSO’s equity stake in KDMK.
Additionally, the companies determined that DENSO will not increase its ownership stake in Aisan.
In what is claimed to be a mutually beneficial agreement, it will allow DENSO to focus on its core causes of ‘Green’ and ‘Peace of Mind’, under which it will work to achieve carbon neutrality, zero traffic accidents and safe and seamless society.
Aisan, on the other hand, will work to improve its product capabilities by combining both Aisan and DENSO’s technology and knowhow, as well as maximizing resources to improve production efficiency and achieve low-cost manufacturing, a release issued by DENSO said.
Further, the two companies will continue to collaborate and utilise each other's strengths and contribute to the realisation of a sustainable mobility society.