Hon Hai, Mitsubishi Electric Explore Automotive Venture Under MOU

(RTTNews) - Hon Hai Precision Industry Co. (HNHAF), Ltd. and Mitsubishi Electric Corporation (MIELF) announced on Friday that the companies together have signed a memorandum of understanding to explore a strategic alliance in the automotive equipment business.

The companies are set to initiate discussions regarding a potential joint venture, which may involve the transfer of a 50 percent stake in Mitsubishi Electric Mobility Corporation to Hon Hai. This initiative indicates Foxconn's interest to further penetrate the automotive sector through collaborations with established industry prominent frontrunners.

The proposed partnership is currently non-binding, with any conclusive agreement dependent upon negotiations concerning commercial terms and obtaining the necessary regulatory approvals.

Both companies have underscored that there is no assurance that the joint venture will come to fruition.

HNHAF is currently trading at $3.25 on the OTC Markets.