Bosch sold its 5% stake in Japan’s Denso for 1.1 billion euro ($1.40 billion) to fund strategic acquisitions and investments.
Selling the entire stake in Denso, ailment means that the equity ties between the two companies has ended, ed but Denso and Bosch will continue their collaborative tie-ups. Bosch announced that until now it has sold about 46 million shares since the mid-1950s and the money gathered will be reinvested.
“It was a non-strategic shareholding for us and we want to use the money to finance future investments including acquisitions,” Gerlingen, Germany-based spokesman Rene Ziegler said by telephone. “We are trying to diversify and are investing and making acquisitions in all segments.”
Before the share announcement Denso dropped 1.4% to almost 2,425 yen in Tokyo, reducing the stock’s gain for 2012 to 14%. Although Bosch and Denso are rivals, they still have agreements according to which they share certain powertrain-related technologies. The two companies also have a JV in the US which produces fuel pump parts and another one in Japan, which manufactures car navigation systems. Bosch was the Japanese company’s biggest shareholder after Toyota, which owns 22.5% of Denso.
“We will continue to seek further cooperation within our existing tie-up framework,” said Denso spokesman Shuji Kojima.