Germany's Thyssenkrupp, Japan's NSK mull automotive JV (updated)

NSK

12/05/2022 07:45

* Thyssenkrupp, NSK sign Memorandum of Understanding
    * Aim would be to develop approach for joint auto business
    * Decision to be taken by the end of the year

 (Adds details on Thyssenkrupp)
    BERLIN, May 12 (Reuters) - Thyssenkrupp  TKAG.DE  and
Japan's NSK  6471.T  are considering forming an automotive joint
venture, the German conglomerate said on Thursday, as it
continues to explore new ownership models for its key business
areas to become leaner.
    The two companies signed a memorandum of understanding (MoU)
to explore a tie-up between Thyssenkrupp's Automotive Technology
division and NSK's steering business, Thyssenkrupp said, adding
the goal was to develop an approach for a joint automotive
business.
    "In the automotive business in particular, size and
economies of scale are key factors for achieving success in
global markets," Chief Executive Martina Merz said in a
statement.
    "A collaboration between our automotive segment and NSK
Steering could help us to further strengthen and expand this
position."
    The two companies have agreed on a phase of non-binding
assessment of the relevant businesses, and aim to make a
decision on a possible cooperation model by the end of the year.
    Thyssenkrupp Automotive Technology accounted for a third of
the company's adjusted operating profit last year and 13%, or
4.5 billion euros ($4.7 billion), of sales.
($1 = 0.9518 euros)

 (Reporting by Kirsti Knolle and Christoph Steitz; Editing by
Maria Sheahan)
 ((kirsti.knolle@thomsonreuters.com;))