Honda to Buy Ohio Battery Plant Assets From LGES for $2.9B

Core Insights - Honda Motor Co., Ltd. is acquiring a factory building and related assets in Ohio from LG Energy Solution for approximately $2.86 billion, excluding land and equipment, to enhance operational efficiency at their joint venture [1][7] - The acquisition is part of a broader strategy to support a $4.4 billion joint-venture battery plant in Ohio, allowing Honda to commit long-term to battery production for both electric and hybrid vehicles [2] - The transaction will be structured as a sale-and-leaseback, with Honda's U.S. subsidiary purchasing the facility and leasing it back to the joint venture, with full-scale operations expected to commence next year [3][7] Financial and Market Context - The deal's final price may be subject to changes based on due diligence and exchange-rate adjustments, with completion targeted for February 28 [1] - The acquisition follows LGES's recent announcement regarding the termination of an EV battery supply agreement with Ford Motor, valued at approximately 9.6 trillion won [3]