Nidec Buys 51 Percent Stake In Chinese Motor Maker
NEW YORK (AP) — Nidec, which makes small motors for everything from car windows to copiers, is buying a 51 percent stake in the Chinese automotive motor company, Jiangsu Kaiyu Auto Appliance Co.
Financial terms were not disclosed Wednesday.
Nidec, of Japan, said the acquisition will help expand its automotive motor business in the fast-growing Chinese market, where it has found it difficult to get a foothold.
The companies also hope to expand sales to emerging markets outside of China, Nidec said.
Jefferies analyst Masahiro Wakasugi backed his "Buy" rating for Nidec Corp., saying that while the near-term impact of the acquisition on Nidec's profits will be limited, the acquisition is a good move for the company and will gain access to Chinese automakers.