Halla Visteon Climate Control (HVCC), an automotive supplier of climate systems, has signed an agreement to take up majority stake of 51% in Japan Climate Systems (JCS) Nanjing.
The acquisition of majority ownership in the company is said to be in line with HVCC's plan to expand its business to cater to growing demand in China.
JCS Nanjing is a joint venture between HVCC, Mazda and Panasonic that manufactures heat exchangers for automotive applications. The company owns three manufacturing facilities located at Nanjing, China and Hiroshima and Yamaguchi in Japan and operations in Malaysia and Mexico.
HVCC president and CEO YH Park said: "We are pleased to have reached an agreement to acquire the majority equity stake in JCS Nanjing. This move leverages our longstanding relationship with JCS and strengthens our ability to deliver shareholder value by supporting automakers in the growing China market."
HVCC's portfolio consists of 11 manufacturing facilities across Beijing, Dalian, Jinan, Wuhu, Chongqing, Nanchang, Changchun, Chengdu, Foshan, Nanjing and Yancheng and one engineering center in Shanghai in China.
The closure of the deal valued at SKW6.5bn ($6.4m) is anticipated in the third quarter of 2014, following the local regulatory and related processes.