Ningbo Yunsheng to buy Japan auto parts firm

Chinese auto parts maker Ningbo Yunsheng Co plans to buy a 79.1 percent stake in unlisted Japanese auto parts firm Nikko Electric Industry Co, the Nikkei business daily reported on Wednesday.

Ningbo will pay several billion yen to buy all the common shares in Nikko Electric held by Daiwa Securities SMBC Principal Investments Co and an investment fund operated by financier Wilbur Ross, the Nikkei said.

The deal underscores the increasing move by Chinese companies to make acquisitions overseas to gain technologies and sales channels, the Nikkei said.

Nikko Electric supplies parts for cars and construction machinery and its clients include Isuzu Motors Ltd, Komatsu Ltd and Mitsubishi Heavy Industries Ltd, the paper said.