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Investing.com -- TDK Corporation plans to transfer its automotive power supply development business to Astemo, effective April 1, 2026. The business primarily deals with xEV DC-DC converters for electric vehicles.
The decision appears to stem from TDK’s assessment that onboard vehicle-mounted chargers are unlikely to achieve significant profitability improvements in the future. The company views Astemo as a more suitable owner for this business segment.
This move aligns with TDK’s ongoing portfolio management strategy. The company has been evaluating approximately 80 cash flow business units (CBUs) based on future business potential and return on invested capital (ROIC) criteria. As of May 2024, TDK had identified 27 CBUs as key businesses requiring monitoring due to low potential and ROIC performance, with the automotive power supply business reportedly among these underperforming units.
According to Morgan Stanley, the transfer is expected to improve TDK’s ROIC and positively impact the company’s medium to long-term earnings and share price performance.
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