Japanese IT multinational NEC is buying out electronics firm NEC Tokin through a JPY38bn (USD424m) stock swap. The deal, which is expected to be complete by June, will increase NEC’s stake in NEC Tokin by 34% to 74%. NEC Tokin is expected to post a net loss for a third year in a row, and will be restructured with NEC closing three of its seven manufacturing plants and five sales offices in the Japan.
NEC and NEC Tokin’s lithium-ion battery joint venture Automotive Energy Supply Corporation will supply Nissan’s electric vehicles, expected to begin production next year. NEC Tokin will supply electrodes for the batteries.
Masakazu Okabe, president of NEC Tokin says "we're a year or two ahead of the competition in automotive battery technology".
StrategyEye's related companies: NEC
