Bain Capital and Lone Star have progressed to the second round of bidding for Mitsubishi Electric’s automotive equipment business, according to a report by Bloomberg citing people familiar with the process.
The US private equity firms are among a shortlist following an initial round of bids last month, the sources said, adding that deliberations are ongoing and no final decision has been made.
Mitsubishi Electric’s automotive unit produces inverters, motors, and car navigation systems for hybrid and electric vehicles, as well as in-car entertainment systems. The segment faces intense cost pressure, compounded by a slowdown in global EV demand.
The potential sale forms part of Mitsubishi Electric’s wider structural reforms. In May, the company said it would decide during the current fiscal year whether to retain or exit businesses generating around JPY800bn ($5bn) in annual sales.
