Nissan Motor Co., Ltd. (Nissan), Mitsubishi Motors Corporation (MMC) and JATCO Ltd (JATCO) concluded a contract on 25 March 2002 relating to the integration of MMC and
JATCO automatic (AT) and continuously variable transmission (CVT) operations. Under the terms of this contract, JATCO and Diamondmatic Co., Ltd. (DMC) effected an
exchange of shares on 1 July 2002.
Through the exchange of shares, fully-owned MMC subsidiary DMC now becomes a fully-owned subsidiary of JATCO, while MMC becomes a new shareholder in JATCO. Nissan and
MMC equity holdings in JATCO after the share exchange stand at 82% and 18% respectively.
The share exchange is designed to boost JATCO's global competitiveness as an AT/CTV manufacturer by merging DMC's development and production operations with those of
JATCO. The merger will increase JATCO's annual production volume to 3,300,000 transmissions and see a significant rise in the company's status as a global-scale AT/CVT
manufacturer. JATCO's status as a global supplier is expected to rise further as it expands annual production to 4 million transmissions within a few years.
The three parties involved have taken the following steps in advancing the operations merger:
| • 1 April 2002 |
: |
MMC divided its AT/CVT operations and incorporated them, on April 1, as a new fully-owned subsidiary company named Diamondmatic (DMC). |
| • 9 May 2002 |
: |
JATCO and DMC signed share exchange contract. |
| • 1 July 2002 |
: |
DMC and JATCO implemented exchange of shares at a ratio of 1.31423 JATCO shares to one DMC share. |
JATCO and DMC are currently working towards a full merger of the two companies in spring 2003.
