STOCKHOLM (Reuters) -- Swedish supplier Autoliv and Japan's Nissin Kogyo will form a joint venture involving the companies' brake businesses, Autoliv said in a statement today.
Autoliv will own 51 percent of the venture which will combine the company's brake control business with part of Nissin Kogyo's automotive braking business.
The enterprise value of the partnership is around 65 billion yen ($539 million), Autoliv said. The deal is expected to close early in 2016 and Autoliv will then purchase its 51 percent for 33.15 billion yen
The new company's revenue is seen at around $600 million, Autoliv said, adding that excluding purchase accounting effects, it is expected to operate in line with Autoliv's long-term operating margin targets for 2016.