Globally renowned mobility supplier - DENSO, and powertrain supplier - Aisan announced their respective Board of Directors have agreed upon and signed an agreement to transfer DENSO’s fuel pump module business to Aisan.
In addition, the Board agreed to allow Aisan to acquire DENSO’s equity stake in Kyosan Denso Manufacturing Kentucky, LLC (KDMK), located in Mt. Sterling, KY. The transfer is estimated to be on August 1, 2022.
Future growth areas
The companies determined that DENSO will not increase its ownership stake in Aisan
The two companies previously announced that they reached a basic agreement on May 20, 2019, to begin studying the possibility of strengthening their competitiveness in powertrain and future growth areas.
As a result of the study, the companies agreed that DENSO will transfer its entire business of developing, producing, and selling fuel pump modules to Aisan, and Aisan will acquire DENSO’s equity stake in KDMK. Additionally, the companies determined that DENSO will not increase its ownership stake in Aisan.
Mutually Beneficial Agreement
The mutually beneficial agreement will allow DENSO to focus on its Two Great Causes: Green and Peace of Mind, under which it will work to achieve carbon neutrality, zero traffic accidents and safe and seamless society. While, Aisan will work to improve its product capabilities by combining both Aisan and DENSO’s technology and knowhow, as well as maximizing resources to improve production efficiency and achieve low-cost manufacturing.
The two companies will continue to collaborate and utilize each other's strengths and contribute to the realization of a sustainable mobility society. This business transfer is subject to approval from the antitrust authorities in the relevant countries and regions.