26 February 1999
German group Robert Bosch GmbH said it plans to acquire a majority stake in Japanese diesel fuel injection pump maker Zexel Corp. Robert Bosch will increase its Zexel stake to 50.04% from the current 31.76%.
Robert Bosch, will buy 86.4 million of 90 million newly issued shares and its Swiss unit, Robert Bosch Internationale Beteiligungen AG, will buy the additional 3.6 million shares. Payment for the shares is due April 2.
Zexel is a manufacturer of diesel fuel injection pumps. It is expected to post 1998/99 sales of 2.8 billion marks ($1.57 billion).
Zexel said it decided to become a part of the Robert Bosch group so that it would be able to expand its operations amid intensifying competition in the global auto market. It said it would use the proceeds from the new share issue for capital investment so it can develop new technology and products.
Source: Diesel Progress