STOCKHOLM, Oct 30 (Reuters) - Auto technology group Veoneer said on Wednesday it had agreed to sell its 51% share of a brake systems joint venture (VNBS) in China and Japan to Honda Motor and venture partner Nissin Kogyo for $176 million.
The news comes after Veoneer announced a strategic review of its brake systems business earlier this year. In June, it bought Nissin Kogyo’s share of the venture’s U.S. operations.
The joint venture will be terminated after the divestments are completed, the company said.
Veoneer, which makes radars, vision systems and software for advanced driver assistance systems and autonomous driving, has been hit by a deep slump in global car production and is currently implementing a range of cost-efficiency measures.
Veoneer said the sale and the termination of the joint venture was part of its announced plan of measures “aimed at focusing Veoneer on its core businesses and providing an effective cost structure to address the current market and business situation in the company”.
In connection with the sale, Veoneer will also be repaid an outstanding loan of around $20 million, and receive a special dividend of about $5 million. (Reporting by Johannes Hellstrom)