Denso Corporation announced that it has concluded a memorandum of understanding (MO”) on starting negotiations for the transfer of selected internal combustion engine parts operations to Niterra Co., Ltd. The two parties reached a decision to sign the MOU during a board of directors meeting on July 10.
In the MOU, Denso is looking to transfer business operations for its spark plug and exhaust gas sensor products (oxygen sensor and air-fuel ratio sensor) to Niterra Co., Ltd.
Denso said Niterra Co., Ltd. boasts some of the world’s leading technologies in its field, and by transferring operations related to these core internal-combustion-engine products to them, the company is looking to enhance the product appeal of internal combustion engines parts by combing technologies and manufacturing capabilities. In addition, Denso said it will accelerate the development of products for electric vehicles in preparation for the full-scale of electrification and will also work on the development of energy management systems which will become increasingly important for electric vehicles. Through these efforts, Denso said it will be able to offer products that are appealing to customers in terms of performance and price in the entire automotive market, including internal combustion engines and electric vehicles, and contribute to the early realization of a carbon-neutral society.
Denso and Niterra Co., Ltd. will begin deliberations aimed at a business transfer of domestic and international development, manufacturing and sales functions for spark plug and exhaust gas sensor products (oxygen sensor and air-fuel ratio sensor), which are part of Denso’s internal combustion engines parts, to Niterra.
Based on the MOU, Denso said both parties will proceed with discussions and negotiations toward finalizing the business transfer contract. The transfer will take place only after official approval has been obtained from competition law authorities in all countries and regions concerned and after fulfilling all other requirements, the company said.
