Bosch Automotive Systems Corp. and Bosch Braking Systems Co. -- both Japanese affiliates of German auto parts maker Robert Bosch GmbH -- on Thursday signed an agreement to merge July 1.
Under the agreement, Bosch Automotive Systems will be the surviving entity with one share in Bosch Braking Systems being exchanged for 0.8 share in Bosch Automotive Systems, the two companies said in a statement.
The newly merged company will be responsible for all auto parts and services of the Bosch group in Japan and will enhance its procurement, development and production, they said.
Other details of the merged company have yet to be decided.
Bosch Automotive Systems is a leading producer of fuel-injection pumps for diesel and gasoline engines and is listed on the first section of the Tokyo Stock Exchange. In the 2000 business year, the Tokyo-based company chalked up an unconsolidated pretax loss of 1.27 billion yen on sales of 127.98 billion yen.
Bosch Braking Systems, a top maker of power brakes, registered a pretax loss of 421 million yen on sales of 93.04 billion yen in the same year. Also based in Tokyo, the company is listed on the TSE's second section.
Bosch Automotive Systems is also considering absorbing its wholly owned subsidiary Bosch Electronics Co., based in Tomioka, Gunma Prefecture, the two companies said.