Japan NTN Bearings Global Business Ranked Third

NTN will successfully acquire SNR Roulements, an imported bearing subsidiary of Renault, France. The company has reached a basic agreement with Renault: It will acquire more than 50% of the subsidiary's shares within the next year and more than 80% of the shares within five years. It is estimated that the acquisition amount will be close to 20 billion yen. With this acquisition, the share of NTN's bearing business in the world market will rise to the third place in the world immediately after Sweden's SKF and Germany's INA-FAG. The SNR company that will acquire the full-funded, manufactured and sold bearings of Renault will be acquired. In 2006, the company had sales of 85 billion yen, ranking first in France and seventh in the world. SNR is responsible for producing approximately 90% of Renault's bearings, and it also supplies German large-scale manufacturers such as DaimlerChrysler and the French Peugeot Citroën Group.

NTN will receive 35% of SNR shares this fall. One year later, it will acquire more than 50%, making it a subsidiary. Within 5 years, it will acquire more than 80% of the shares. The acquisition funds will be self-financing. NTN will send a director to SNR but will retain the SNR brand.

The joint venture between NTN and SNR entered the substantive stage:

The joint venture between NTN Corporation of Japan and SNR Roulements, a wholly owned subsidiary of Renault of France, entered the substantive stage. According to the contract concluded on July 24th, NTN decided to purchase 35% of SNR shares and raise the ratio to 51% after 1 year, and complete 80% of SNR shares within 3 to 5 years. According to the current stock holding plan determined by the contract, it is expected that all relevant procedures will be completed by the end of October.

NTN recently announced that it will invest in the Renault subsidiary in France, the French company SNR Roulements, which manufactures and sells auto parts such as bearings. Entien has signed a contract with Reynolds for a staged acquisition and plans to acquire 35% of shares by the end of October 2006, increase to 51% after 1 year, and 80% after 3 to 5 years. Entien’s acquisition of SNR is mainly to strengthen the company’s business base in Europe.

SNR is the largest bearing manufacturer in France. In addition to automotive-related components, it also manufactures and sells industrial machinery and aerospace-related components. Entien intends to use SNR's sensor technology and technologies and experience that are in line with the characteristics of the European market to expand its own business and increase its competitiveness.

In addition to the effective use of manufacturing plants and development centers in France, Italy, Romania, and Brazil, SNR also hopes to improve productivity, quality, technology, and business capabilities through personnel exchanges.

In this way, NTN Bearings shakes the ranking of the world's bearing companies, and it is possible to surpass NSK Bearings to become the leading bearing manufacturing company in Japan!