Key facts
- Tokai Kogyo Holdings acquired Kinugawa Rubber Industrial Holdings, Nikkei reported on November 4.
- Tokai Kogyo is a Japanese auto parts company with close ties to Toyota Motor.
- Kinugawa Rubber Industrial Holdings is linked to Nissan Motor's supplier network.
- Nikkei said Chinese competition is pushing Japanese auto suppliers to realign beyond their own supply networks.
Tokai Kogyo Holdings, a Japanese auto parts company with close ties to Toyota Motor, has acquired Kinugawa Rubber Industrial Holdings, a peer linked to Nissan Motor, Nikkei reported on November 4. The report did not give the value of the deal, its structure or a completion date.
Nikkei described the transaction as part of a realignment among Japanese auto suppliers that are moving beyond their own close-knit supply networks as they face competition from Chinese manufacturers. The report did not specify which Chinese competitors or what pressure they are exerting on the two companies.
Tokai Kogyo and Kinugawa Rubber sit in the supplier networks of Toyota and Nissan respectively, according to the report. No further detail on either company's operations, products or financials was provided.