Nidec To Succeed Business Of Tokyo Maruzen Industry - Quick Facts

(RTTNews) - Nidec Corp. (NJDCY.PK) said it resolved at a meeting of its board of directors held on August 9, 2017 to make its wholly-owned subsidiary Nidec Sankyo Corp. succeed the business of Tokyo Maruzen Industry Co., Ltd. - the splitting company - by way of an absorption type company split.

For this purpose, both companies have entered into an agreement under which Nidec Sankyo will form a new company to succeed the splitting company's business.

Nidec noted that it has been developing its electric contact business since January 2014, when Nidec Sankyo acquired Mitsubishi Materials C.M.I. Corporation, currently Nidec Sankyo CMI Corp.

Nidec Sankyo and the splitting company have entered into an agreement for transferring the entire business, including the mainstay electric contact business, of the splitting company in response to the surge in demand for electric contacts.

According to Nidec, the efficient use of the managerial and operational resources of Nidec Sankyo and the splitting company will help strengthen their capacity in material development, production engineering and manufacturing responsiveness, which will lead to profitability improvement.