14 November 2025
Announcement Regarding Listed Subsidiaries
On October 30th, we announced a tender offer to make Sumitomo Riko a wholly-owned subsidiary and the transfer of our company’s shares in Sumitomo Densetsu. In this post, I’d like to explain the background of these two decisions.
First, Sumitomo Riko. In the midst of accelerating changes in car manufacturing industry, it was determined that combining Sumitomo Riko’s strengths in technology and R&D with the Sumitomo Electric Group’s materials and processing technologies would boost the entire organization’s competitiveness in the mobility segment.
As for Sumitomo Densetsu, we have had a long-standing partnership that goes back to our capital participation in 1951. A number of measures had been considered into how to leverage their strengths in engineering and human resources in order to achieve further growth. Ultimately, it was determined that the best path forward for Sumitomo Densetsu to grow significantly is to become part of the Daiwa House Group, owing to an expansion of orders for development projects from that group as well as the prospect of overseas expansion.
In both cases, we reached this decision after thoroughly examining the characteristics of each company's business and carefully considering the optimal capital relationships for the Sumitomo Electric Group.
We now look forward to accelerating collaboration with Sumitomo Riko to tackle industry trends such as CASE (connected, autonomous, shared/service, electric) and other important matters, and we will strive to create synergy. Although the capital relationship with Sumitomo Densetsu will be dissolved, the cooperative relationship we have built over the years through our work with electric power companies and other customers is still important to us, and thus we will continue making efforts to enhance each other’s corporate value.
Latest Blog Articles
27 November 2023
21 January 2022
14 December 2021
05 December 2019
09 August 2019
03 December 2018
About This Blog
Sumitomo Electric Industries, Ltd. President's blog is operated by the Company. Please note the about this blog.