Samvardhana Motherson rises after board OKs acquisition proposals worth $184 million

YGCL is a company duly incorporated and existing under the laws of Japan and is listed on Tokyo Stock Exchange and Shinnichi is a subsidiary of YGCL with 62% ownership by YGCL.

Samvardhana Motherson would execute the aforementioned acquisition through its wholly owned subsidiary Motherson Global Investments B.V. (MGI BV).

Additionally, the company will also acquire, either directly or through its wholly owned subsidiary, 100% of the shares in Yutaka Autoparts India (Yutaka India) from YGCL.

Honda Motor Co. (Honda) currently owns 69.66% stake in YGCL, and the rest is owned by the public. SAMIL would acquire 81% stake in YGCL in multiple steps. Post completion of all steps, Honda shall continue to own remaining 19% stake in YGCL.

MGI BV will also acquire 11% stake in Shinnichi Kogyo Co. (Shinnichi, Japan),which is a subsidiary of YGCL, from Honda.

YGCL is engaged in production of metal components and assemblies including rotors and stator assemblies for motors, drive systems, brake systems and thermal management systems. YGCL has 13 manufacturing facilities and 1 R&D facilities in 9 countries across the world i.e. Japan, China, United States, Thailand, Brazil, India, Indonesia, Mexico and Philippines. YGCL had recorded turnover of nearly $1.2 billion during the April?24 to March?25 period.

SAMIL stated that this transaction would further strengthen company?s global partnership with Honda and help expand share of business with Japanese OEMs. It would also enable the company to potentially cross-sell YGCL?s existing product portfolio to other OEMs especially in emerging markets.

The proposed transaction would require merger control clearance required from merger control authorities of Japan, United States, China, Brazil and Mexico.

The company expects to conclude the proposed transaction by Q1 FY 26-27.

The aforementioned 81% stake in YGCL is being acquired for a cash consideration of $184 million.

Samvardhana Motherson International (SAMIL) is one of the world?s leading specialized automotive component manufacturing companies for OEMs. It is currently the largest auto ancillary in India and is ranked among the top 15 automotive suppliers worldwide.

The company's consolidated net profit declined 48.52% to Rs 511.84 crore in the quarter ended June 2025 as against Rs 994.17 crore during the previous quarter ended June 2024. Revenue rose 4.98% to Rs 2,9942.83 crore in Q1 FY26 over Q1 FY25.

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