Global law firm K&L Gates assisted Samvardhana Motherson International Limited (Motherson) in entering into definitive agreements through its subsidiary SMRP BV to acquire a 95% stake in Japanese automotive parts manufacturer Atsumitec Co, Ltd (Atsumitec).

Atsumitec specializes in metal and machining, primarily manufacturing chassis and transmission parts. It has nine facilities across China, Hong Kong, Indonesia, Japan, Mexico, Thailand, the United States, and Vietnam.

The acquisition involves a series of transactions. Motherson will purchase at least 48.02% of Atsumitec’s shares from shareholders. If necessary, a squeeze-out or stock consolidation process will follow. The final step involves a share repurchase by Atsumitec from Honda Motors Co. (Honda), resulting in a 95:5 strategic partnership between Motherson and Honda. The transactions are expected to be completed in early 2025, pending clearance from Japanese merger control authorities.

The deal team advising Motherson was led by Corporate partners David Kuo and Meraj Noor (Singapore), Frank Voon (Hong Kong), and Tsuguhito Omagari (Tokyo). They were supported by senior associate Ying Chern Tan and associate Esther Neo (Singapore). Additional corporate support was provided by counsels Kyosuke Momoi (Tokyo) and Elsa Mak (Hong Kong), and associates Daisuke Morinaga (Tokyo) and Yibo Wu (Shanghai). Counsel Hidehiko Ichikawa (Tokyo) advised on intellectual property issues, while associate Goro Shimazaki (Tokyo) assisted with employment-related matters. The team also collaborated with local counsel across Indonesia, Mexico, Thailand and Vietnam. 

US advice was provided by Seattle partners Adam Heyd (Corporate), Alyssa Moir (Environmental), Catherine Smith (Employment), Christine Jochim (Environmental), Mark Wittow (Intellectual Property), and Kari Larson (Real Estate), as well as Nashville partner Matt Miller (Corporate).

MUFG Bank Ltd. served as financial advisor to Motherson on the proposed transactions.

Kuo stated: “It has been a pleasure to advise Samvardhana Motherson on this strategic acquisition, and we are thankful for the trust they have placed in us. Our integrated, multidisciplinary teams working alongside a sophisticated and focused client in-house team made this transaction possible. This combination ushers an exciting new phase for the merged group. As we continue to build our service offering for Indian clients, this transaction is another endorsement of our capability and track record.”

K&L Gates’ Corporate practice is one of the most substantial in the legal industry, with hundreds of lawyers in offices on five continents providing clients with practical legal solutions in the structuring, financing, and completion of domestic, international, and cross-border transactions.

* All Singapore lawyers are members of K&L Gates Straits Law LLC, the Singapore office of global law firm K&L Gates.