India's Motherson closes in on deal for Honda-affiliated auto parts maker

HAMAMATSU -- Major Indian auto parts supplier Samvardhana Motherson International plans to soon acquire Atsumitec, a Honda Motor-affiliated transmission and engine components maker hoping to navigate the transition to electric vehicles.

Motherson will own 95% of the company, and Honda will keep a 5% stake, when the 8.5 billion yen ($56 million) transaction closes as early as March. Atsumitec -- based in Hamamatsu, between Tokyo and Nagoya -- will retain its name and current President Hideyuki Suzuki.