Mitsubishi Electric’s October 16, 2026 agreement with a Foxconn subsidiary targets a 50% stake transfer in its automotive-equipment business for an estimated ¥115 billion. Completion is expected in October 2027, subject to required approvals and other contractual conditions—not in October 2026.
The joint announcement and detailed issuer filing identify the buyer as Lin Yin International Investment, an investment-management subsidiary of Hon Hai Precision Industry, known as Foxconn. After the transfer, Mitsubishi Electric and Lin Yin would jointly operate Mitsubishi Electric Mobility.
Three financial figures that should not be confused
| Question | Verified terms and source |
|---|---|
| Interest and estimated price | 50% of the issued shares of Mitsubishi Electric Mobility for an estimated ¥115 billion. Issuer filing, pages 1 and 8 |
| Whole-business valuations | ¥320 billion enterprise value and ¥230 billion equity value; half the equity value is ¥115 billion. Issuer filing, page 3 |
| Closing target | October 2027, conditional on competition-law and other approvals and contractual conditions. Issuer timetable, pages 1 and 4 |
| Expected accounting effect | Approximately ¥100 billion impairment loss expected in the fiscal year ending March 31, 2027; not a completed-transfer price or a verified recorded loss. Issuer outlook, page 8 |
The calculation is ¥230 billion × 50% = ¥115 billion. The filing’s ¥320 billion enterprise value concerns the target business as a whole; it is not the stated price for the 50% stake. The estimated transfer price must also be kept separate from the anticipated impairment.
From April discussions to an October agreement
The April 24 MoU started discussions about an alliance. The October 16 document records the later agreement and a wider restructuring process, including a company split and intra-group reorganization. This is a review of that dated agreement, not a new October 19 announcement or confirmation that ownership has changed.
What remains uncertain
Mitsubishi Electric said it was reviewing its full-year earnings forecast, including other factors, and planned to announce the forecast on October 30, 2026. That is a scheduled disclosure, not a forecast already released here. Approvals, implementation and eventual completion require later evidence; the companies’ ambitions for electric powertrains and software are not verified revenue or achieved synergies.
For another example of why deal terms and completed ownership changes are different, read CapKet’s Prysmian–Atkore closing-conditions explainer.
Recorded source observation: . This is a source-check timestamp, not a transaction-completion statement or a new update to an earlier article.