“As per JV agreement between the parties, the company has first right of refusal to purchase the entire shareholding of Mitsubishi Corporation,” stated Packages Limited.
The auto company is expected to post a net loss of 360 billion yen in the financial year to March 2021, hurt by a plunge in sales due in part to the coronavirus pandemic.
The automaker has bet on growth in Indonesia, Philippines, Thailand and Vietnam where it has dominated bigger rivals, and which have felt the brunt of the coronavirus pandemic later than China and other developed countries.
Mitsubishi Heavy, Japan's biggest defence company, better compete for naval contracts. It could also mark a tentative step towards consolidation among Japan's numerous military equipment makers.
Mitsubishi, a major supplier of such chips to Toyota Motor Corp, said it would invest about 20 billion yen ($187 million) to acquire two idled facilities at Sharp's chip plant and launch production lines there.