Murata Divests Micro Battery Business to Maxell in Strategic Refocus: What Investors Need to Know

Key Points from the Announcement

• Murata Manufacturing Co., Ltd. (TSE: 6981) is divesting its micro primary battery business to Maxell, Ltd., in a transaction valued at 8 billion yen.
• The deal involves a simplified absorption-type company split, where Murata will transfer the micro battery business to a new wholly owned subsidiary (“SAKURA Co., Ltd.”), and then sell all its shares in this subsidiary to Maxell.
• The micro primary battery business includes coin manganese dioxide lithium batteries, silver oxide batteries, and alkaline button batteries.
• This move is aimed at sharpening Murata’s focus on its Cylindrical Type Lithium-Ion Secondary Battery business, targeting high-growth sectors such as power tools and energy storage systems (ESS).
• The effective date for the business transfer is scheduled for March 1, 2026.
• Murata expects the financial impact of the deal on its consolidated results to be insignificant.

Deal Rationale and Strategic Direction

Murata acquired its battery business from Sony Corporation in 2017 and has been operating it since. After a strategic review, Murata determined that Maxell is the optimal owner to further develop the micro primary battery business. This transfer allows Murata to redeploy management resources towards its higher-growth Cylindrical Type Lithium-Ion Secondary Battery business, a segment with strong prospects in the rapidly expanding power tool and ESS markets.

Transaction Structure and Timeline

• Board Approval and Agreements: The Murata board resolved on October 31, 2025, to proceed with the simplifed absorption-type split and share transfer.
• Key Dates:
  • Board Resolution and Split Agreement: October 31, 2025
  • Effective Date of Company Split and Share Transfer: March 1, 2026 (planned)
• Mechanism: The business will be succeeded by a new Murata subsidiary, SAKURA Co., Ltd., which will then become a Maxell subsidiary post-transfer.
• This is a “simplified absorption-type company split,” meaning shareholder approval is not required under Japanese law for Murata.

Financial and Operational Details

• Business Subject to Transfer: Micro primary battery business, with sales of 12.7 billion yen (<0.7% of Murata's consolidated revenue of 1.74 trillion yen in FY2025).
• Assets and Liabilities Transferred: 2.47 billion yen in assets and 371 million yen in liabilities (as of December 31, 2024; figures will be adjusted to the effective date).
• Transfer Price: 8 billion yen for the single share of SAKURA Co., Ltd. (the new company holding the battery business).
• No change to Murata’s name, location, representative, business, capital, or fiscal year-end as a result of the transaction.
• Shareholding Status: Murata will own 0 shares in the new company post-transfer.
• Counterparty: Maxell, Ltd., a Kyoto-based battery manufacturer, is the buyer and will integrate the micro battery business into its operations.
• Relationship: The transaction is at arm’s length; there are no related-party concerns.

Implications and Potential Share Price Sensitivity

• Strategic Refocus: For investors, this signals Murata’s intent to double down on its lithium-ion battery operations for applications with higher growth potential, such as power tools and energy storage. This could enhance future profitability and market competitiveness.
• Non-Core Business Divestment: The micro primary battery business is a small fraction of Murata’s revenues but could be more valuable under Maxell, which specializes in this area. Investors should watch for how Murata redeploys the proceeds and management resources.
• Cash Inflow: The 8 billion yen inflow, while not highly material relative to Murata’s size, adds incremental flexibility for investment or shareholder returns.
• No Immediate EPS Impact: Murata states the financial effect is “insignificant” for consolidated forecasts, which may temper any immediate share price reaction. However, the strategic clarity and focus could be viewed positively by the market.
• Maxell Impact: For Maxell shareholders, the deal could be more significant, as it expands Maxell’s scale in micro batteries and may provide synergy benefits.

Full Timeline of the Transaction

Background on the Companies Involved

• Murata Manufacturing Co., Ltd.: A global leader in electronic devices, with over 1.7 trillion yen in annual sales, focused on fine ceramics and advanced battery technology.
• Maxell, Ltd.: A well-known battery and component manufacturer, now expanding its position in the micro battery market.

Investor Takeaway

This transaction is a classic case of strategic portfolio review leading to divestment of non-core assets. While the direct financial impact on Murata is limited, the enhanced focus on lithium-ion batteries could position the company for stronger growth in key emerging segments. Investors should monitor Murata’s reinvestment of sale proceeds and progress in its core battery operations. For Maxell, the acquisition could be a catalyst for growth in micro batteries, depending on integration success and market demand.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a professional financial advisor before making investment decisions.

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