Update on Disclosed Matter: Mitsubishi Electric to Transfer Automotive-equipment Business to New Subsidiary as Part of Restructuring

TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will transfer its automotive-equipment business and assets to a future wholly owned subsidiary Melco Automotive Equipment Business Split Preparation Corporation (the “Prep Company”), through an absorption-type company split effective April 1, 2024 (scheduled) (the “Company Split”), following the announcement “Mitsubishi Electric to Restructure its Automotive-equipment Business” issued on April 24 of this year.

As the Company Split will take the form of a simplified absorption-type company split with a wholly owned subsidiary of Mitsubishi Electric, certain information is omitted from this announcement.

1. Purpose of Company Split

Mitsubishi Electric is implementing strategic measures appropriate to each of its target businesses in order to adjust its business portfolio and strengthen its business structure for improved profitability and asset utilization. The company aims to streamline decision-making and accelerate transformation to urgently improve the profitability of its automotive-equipment business in the face of rapid changes taking place in the automotive industry, including the shift to connected, autonomous, shared & service, and electric (CASE) vehicles. Mitsubishi Electric expects the Company Split to improve operational efficiency and enhance the portfolio of its automotive-equipment business for greater profitability.

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