Samvardhana Motherson Group takeover bid for Yutaka Giken

The Samvardhana Motherson Group takeover bid marks a significant move by the Indian automotive components major to expand its footprint in Japan through the acquisition of Yutaka Giken Co. Ltd., a supplier closely linked to Honda Motor Co. Ltd. The takeover bid is planned for the first half of February, following regulatory clearances across multiple jurisdictions.

Regulatory clearances and transaction timeline

The Indian group confirmed it had received approvals from competition law authorities in all relevant countries by January 29. These clearances were essential for proceeding with the takeover bid, which had initially been scheduled for the latter half of January but faced delays due to pending approvals in certain regions.

Background of the agreement with Honda

In August last year, Motherson reached an agreement with Honda to acquire Yutaka Giken. At present, Honda holds a 69.66% investment ratio in the Japanese automotive parts manufacturer, making it the dominant shareholder prior to the proposed transaction.

Stake acquisition and delisting plan

Under the takeover bid, Motherson intends to acquire 81% of Yutaka Giken’s outstanding shares by the end of July. This level of ownership would allow the company to proceed with delisting Yutaka Giken from the market, aligning it more closely with Motherson’s global operations.

Impact on Honda’s shareholding

Once the acquisition is completed, Honda’s investment ratio in Yutaka Giken is expected to decline to 19%. This change reflects Honda’s partial exit while maintaining a minority stake, reshaping the long-standing capital relationship between Honda and the Japanese components supplier. The Samvardhana Motherson Group takeover bid underscores the accelerating consolidation in the global automotive components sector, as suppliers seek scale, geographic diversification, and stronger integration with key original equipment manufacturers.