Niterra Co.,Ltd.

Niterra announced on the 2nd that it has decided to cancel its acquisition of Denso's spark plug and exhaust sensor businesses, including oxygen sensors and air-fuel ratio sensors, and to sign an agreement terminating the contract. Denso requested the cancellation, citing changes in the market environment and a review of its policy regarding the businesses in question, and Niterra accepted the request. The acquisition had been announced on September 1, 2025, and the company had continued discussions toward completing it, but it judged that prolonged negotiations would increase uncertainty over the businesses' future prospects, affect the formulation of integration plans, and reduce the benefits of the acquisition. The full-year earnings forecast for the fiscal year ending March 2027 had incorporated preparation costs for the acquisition, but the company says the impact of the cancellation on its results will be minor. As for the Medium-Term Management Plan 2030 announced in November 2025, the company plans to re-examine its business plan, including capital allocation for growth investments, and announce it at a later date.