Honda plans to acquire a controlling 61% stake in automotive parts manufacturer Astemo for ¥152.3 billion to enhance its capabilities in developing Software-Defined Vehicles.
Target Information
Honda Motor Co., Ltd. (ticker: 7267) has announced its plan to acquire a controlling stake in Astemo, an automotive parts manufacturer, currently categorized as an equity method affiliate. This strategic move aims to bolster Honda's capabilities in developing Software-Defined Vehicles (SDVs), leveraging advancements in artificial intelligence (AI) and software technology. For the fiscal year ending March 2025, Astemo reported a revenue of ¥2.18 trillion and an operating profit of ¥67.4 billion. The acquisition price is set at ¥152.3 billion, with the transaction expected to close between April and June 2026.
Through this acquisition, Honda intends to increase its ownership in Astemo from 40% to 61%, strengthening its foothold in the competitive auto parts sector as it transitions towards increasingly software-driven vehicle functionalities.
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Industry Overview in Japan
The automotive industry in Japan remains a cornerstone of the nation's economy, contributing significantly to GDP and providing millions of jobs. Japan hosts some of the world’s leading automotive manufacturers,
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Honda
invested in
Astemo
in 2025
in a Other deal
Disclosed details
Transaction Size: $152M
Revenue: $199M
EBITDA: $7M
EBIT: $7M
Enterprise Value: $1,341M
Equity Value: $1,341M
Multiples
EV/EBITDA: 199.0x
EV/EBIT: 199.0x
EV/Revenue: 6.7x
P/Revenue: 6.7x