Japan's Nidec to buy Emerson's motors and control businesses (Roundup)

Aug 18, 2010, 9:53 GMT

Tokyo - Nidec Corp announced Wednesday the Kyoto-based precision producer was to acquire the motors and controls businesses of US company Emerson Electric Co, to expand its global operations in automotive, home appliance and industrial motors.

Nidec said it was scheduled to complete the transaction by the end of September, but did not disclose financial terms. The Nikkei Business daily said earlier that the deal would cost 60-70 billion yen (702-819 million dollars).

Nidec founder and chief executive Shigenobu Nagamori denied the reported estimated cost, saying he was not buying the unit at such a high price.

He also said that the recent strength of the yen had worked in his company's favour for the acquisition.

'While the appreciation of the yen has produced so much gloomy news, it does have the advantage of allowing us to buy a company like this,' Nagamori told a news conference, according to Nikkei.

As demand for motors in home appliances, vehicles and other sectors grows globally, Nidec said it aims to take advantage of the strength of Emerson Electric, which has a strong presence in the home appliance motor business in North America.

'We intend to scale up our home appliance motor business with a renewed focus on research and development, manufacturing and sales activities,' Nidec said in a statement.

Nidec is expected to keep the 6,000 employees, including 1,700 in the United States, employed by acquired departments of Emerson Electric. They also operate research and development, production and sales centres mainly in the US, Mexico, Britain and China.