(Reuters) - Key Safety Systems secured funding to acquire nearly all of airbag maker Takata Corp’s assets from a group led by its parent Ningbo Joyson Electronic Corp (600699.SS).
The $1.59 billion deal, which is also funded by private equity firm PAG and Future Industry Investment Fund, does not include Takata’s liabilities from the recall of its ammonium nitrate airbag inflators, Ningbo Joyson said in a statement on Wednesday.
Takata’s assets will be merged into Key Safety Systems and the combined entity will be called Joyson Safety Systems, with Ningbo Joyson holding a majority stake, the Chinese company said.
Takata and its U.S. unit, TK Holdings Inc, filed for bankruptcy last year in the wake of the world’s largest automotive safety recall, triggered by air bag inflators that could explode with excessive force, unleashing metal shrapnel inside cars and trucks.
Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva