Germany's Bosch sells entire stake in Japan's Denso for $1.40 bn
09 November 2012
German car-parts maker and engineering firm, Robert Bosch GmBH, yesterday said that it had recently sold its entire 5.4-per cent stake in Japan's Denso for around €1.1 billion ($1.40 billion) in order to raise money for capital expenditure and future acquisitions.
Bosch, which held the stake since the mid-1950s as a financial investment, sold around 46 million shares in Denso, the world's second-biggest car parts maker after Bosch.
Stuttgart-based Bosch said that the sale in no way affects the long-standing and successful relationship between Bosch and Denso. ''For nearly 60 years now, the two companies have been cooperating in the automotive supply industry. The basis of this successful cooperation has always been mutual trust and the common desire for excellent technical solutions,'' said Dr Stefan Asenkerschbaumer, CFO of Bosch.
He added that the two companies will continue to work together within the framework of existing partnerships and alliances.
Bosch and Denso have been in partnership since 1953, and signed a first license agreement for the manufacture of electric automotive equipment such as generators and starters.
In 1956, they expanded their license agreement to include the manufacture of spark plugs.