Honda has pushed back its timeline for taking majority control of brake and chassis supplier Astemo, moving the target for completing its acquisition of an additional 21 percent of the company’s shares from the first quarter to before the end of the third quarter of the fiscal year ending March 31, 2027. The automaker said in a newsroom announcement this week that approval procedures with regulatory authorities in certain countries have not yet been completed. The plan, first announced in December 2025, will convert Astemo from an equity-method affiliate into a consolidated Honda subsidiary.
Highlights
- Honda will acquire an additional 21 percent of Astemo’s outstanding shares from Hitachi under the December 2025 agreement.
- The resulting shareholding structure will be 61 percent Honda, 19 percent Hitachi, and 20 percent JIC Capital.
- Completion moves from the first quarter to before the end of the third quarter of the fiscal year ending March 31, 2027.
- The delay stems from pending clearances under competition laws in certain countries.
Why Is the Astemo Transaction Delayed?
Honda said it had been working to secure the clearances and approvals required under competition laws and other regulations in time to close the transaction during the first quarter of the current fiscal year, as originally planned. With approval procedures still open in certain countries, the company revised the completion target to before the end of the third quarter.
The underlying deal is unchanged. Honda, Hitachi, and JIC Capital — including the JICC-01 Limited Partnership managed by a wholly owned JICC subsidiary — agreed in December 2025 that Honda would acquire shares equivalent to 21 percent of Astemo from Hitachi. The purchase changes the shareholding structure to:
- Honda: 61 percent
- Hitachi: 19 percent
- JIC Capital: 20 percent
What Consolidation Means for Astemo
Honda described Astemo as an important partner with strengths in both hardware and software technologies, and said the supplier’s growth is indispensable to Honda’s software-defined vehicle (SDV) development capabilities and cost competitiveness. As parent company, Honda said it intends to lead Astemo’s transformation toward a business structure built for high-speed, high-efficiency development of AI and software technologies.
The move deepens Honda’s stake in a supplier it helped create. Astemo was formed in January 2021 through the merger of Hitachi Automotive Systems with Honda affiliates Keihin, Showa, and Nissin Kogyo.
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