Hon Hai and Mitsubishi Electric agreed to split Mitsubishi Electric Mobility, at an expected 115 billion yen for 50 percent

Hon Hai Precision Industry, the company known as Foxconn, and Mitsubishi Electric said on 16 October 2026 that they had signed a final agreement to run Mitsubishi Electric's automotive-equipment business together. The buyer of the stake is not Hon Hai itself. Hon Hai's release says Lin Yin International Investment, an investment subsidiary, will receive 50 percent of Mitsubishi Electric Mobility, the company that handles that business, and that the two owners will then operate it jointly. The expected price is 115.0 billion yen. The agreement sets an enterprise value of 320.0 billion yen and an equity value of 230.0 billion yen, and Hon Hai says the price is the half of that equity value being transferred. Closing depends on approvals, including competition-law clearances. Hon Hai's page says the transfer is expected to be completed on 1 October 2027.

Mitsubishi Electric's disclosure of the same day prints the same price, the same enterprise value, and the same equity value. Its narrative says the transfer is expected to be completed in October 2027. Its schedule table lists October 2027, marked as scheduled, as the effective date of a company split and the closing date of the share transfer. It does not print 1 October. The company-split agreement itself is scheduled for the first half of the fiscal year ending March 2028. Both documents say the deal waits on approvals under competition laws and other conditions. It has not closed.

What the October documents say the joint operation will combine is Mitsubishi Electric Mobility's work in electric powertrains, software, and vehicle control with Hon Hai's speed, scale, and market reach. They say the companies expect to offer high-quality electric-vehicle platforms, meaning basic structures, developed in Japan. They do not use the word e-axle. An April memorandum, which Mitsubishi Electric still publishes, was an agreement to explore an alliance, not this share-transfer contract. In that April text, Mitsubishi Electric said the companies aimed at synergies in electrification, autonomous driving, and software-defined vehicle technologies, and that an envisioned Japanese platform would include powertrain and autonomous driving technologies. It also said Mitsubishi Electric was considering a transfer of 50 percent. The October purpose section keeps electric powertrains, software, vehicle control, and platforms. It does not repeat the phrase autonomous driving. A reader should not treat the April exploration language as a term of the October contract.

The October disclosure also says Mitsubishi Electric expects to book an impairment loss of about 100.0 billion yen under other profit or loss in the fiscal year ending 31 March 2027, in connection with the transfer. It says the company is reviewing its full-year forecast, including other factors, and plans to announce that forecast on 30 October 2026. From the third quarter of the fiscal year ending 31 March 2028, it says, Mitsubishi Electric Mobility would stop being a consolidated subsidiary and become an equity-method affiliate. Those are the company's statements about its accounts. They are not a valuation of the shares and not a prediction of the 30 October forecast.

Mitsubishi Electric Mobility was established on 1 April 2024. The disclosure lists Kazunori Tanaka as president and says that, as of 31 March 2026, Mitsubishi Electric held 100 percent. Non-consolidated revenue was 657,565 million yen in the year ended 31 March 2026, with operating profit of 13,183 million yen. The business being split is wider than that subsidiary line. The disclosure says consolidated operating results of the target business were revenue of 875.6 billion yen in that same year, with total assets of 727.5 billion yen and total liabilities of 375.4 billion yen. It labels those asset and liability figures as unaudited internal management numbers for the whole target business, based on the 31 March 2026 balance sheet, and says the amounts actually split will change before the effective date. The 875.6 billion yen and the 657,565 million yen are different scopes. They should not be added together.

After shares are issued as consideration for the split, the disclosure says Mitsubishi Electric would hold 1,006 shares before the transfer and would transfer 503, leaving each side with 50 percent of the voting rights. The transfer price on that table is again 115.0 billion yen, marked as estimated. Lin Yin is described as wholly owned by Hon Hai, established in 1998, and engaged in general investment. The disclosure says there was no relationship between Mitsubishi Electric and Lin Yin that required disclosure.

Analysis

The price in both October documents is 115.0 billion yen for 50 percent, tied by the companies to an equity value of 230.0 billion yen. Neither document prints a euro price. Mitsubishi Electric does print an exchange rate, 160 yen to the dollar, and it uses that rate only for a different figure, group revenue in the year ended 31 March 2026. This desk is not converting the stake price with that rate. The closing window is also not one sentence. Hon Hai's website says 1 October 2027. Mitsubishi Electric's disclosure says October 2027, scheduled, after approvals. Until those approvals are announced as obtained, the stake has not moved.

The April text is useful for what the companies said they wanted to study, including autonomous driving. The October text is the contract they announced. Electric powertrains and vehicle platforms are in the October description. An e-axle product, a production site, and a customer for a finished vehicle are not named in the pages this desk opened.

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