TOKYO Japanese trading
house Mitsui & Co. Ltd. said it will acquire up to a
30-percent stake in the controlling companies of Gestamp
Automoción's (GA's) North and South American
Subject to regulatory approval
by relevant authorities, Mitsui will initially buy newly issued
shares of GAs companies in the Americas through a
third-party allocation of newly issued shares for a 15-percent
stake. It will also provide convertible loans for a total
investment of approximately 300 million ($391
Mitsui said the move comes as it
sees growth in the automotive markets of Brazil, the United
States, Argentina and Mexico, where GA has a total of 15
Mitsuis acquisition of the
stake will support GAs diversification efforts with Asian
automotive manufacturers, it said. The combination of its steel
supply network, including Steel Technologies Inc., will
position the joint venture as Mitsuis core business in
the automotive value chain.
Mitsui expects to close the
acquisition in June.
Madrid-headquartered GA is one
of the worlds largest manufacturers of automotive
components. The company produces body-in-white, chassis and
mechanisms for automotive manufacturers, primarily in Europe
and the Americas.
Corinna Petry, Chicago, contributed to this
A version of this article was first published by AMM sister
publication Steel First.