Taking advantage of the sharp depreciation of the euro, Nisshinbo Holdings Inc., a leading textile and auto brake maker, announced on Sept. 26 that it will acquire Luxembourg-based TMD Friction Group SA, the world's second-largest maker of auto brake friction materials.
With the takeover, the Japanese company will hold more than 15 percent of the global market for the auto brake materials, making it the global leader. The acquisition price is 440 million euros (44.8 billion yen or $586 million).
"Although the current levels of the strong yen went beyond our expectations, (the current exchange situation) gives us valuable opportunities to expand overseas investments," said Shizuka Uzawa, president and representative director of Nisshinbo Holdings, at a news conference in Tokyo.
The Tokyo-based company produces auto brake friction materials and other parts in Japan, the United States and Thailand to supply automakers.
Nisshinbo Holdings started planning the acquisition in July, the company said. With the significant strengthening of the exchange rate of around 102 yen to the euro at the present time from about 117 yen in early July, the acquisition cost dropped nearly 7 billion yen, making it an opportune time for the Japanese company to buy TMD Friction Group.
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