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Mitsui will acquire stake in GA’s American operations

Keywords: Tags  Mitsui, automotive, Gestamp Automoción

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 operations.

Subject to regulatory approval by relevant authorities, Mitsui will initially buy newly issued shares of GA’s 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 million).

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 plants.

Mitsui’s acquisition of the stake will support GA’s 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 Mitsui’s core business in the automotive value chain.

Mitsui expects to close the acquisition in June.

Madrid-headquartered GA is one of the world’s 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 article.

A version of this article was first published by AMM sister publication Steel First.

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