NGK, Denso finalizing deal over spark plug business transfer

For the longest time, car manufacturers, especially the Japanese, turn to Denso and NGK when it comes to spark plugs. But soon, there could only be one.

Denso and NGK have begun discussions regarding the transfer of Denso ceramic products such as spark plugs, O2 sensors, and air-fuel ratio sensors to NGK.

Details of the basic agreement state that NGK Spark Plug Co., Ltd. will acquire the development, manufacturing, and sales functions of spark plugs and exhaust sensors (O2 sensors and air-fuel ratio (A/F) sensors), both in Japan and overseas, among Denso's internal combustion engine products.

Since Denso believes the industry for internal combustion engine products is expected to shrink, they are shifting the business focus on accelerating the development of electrified products and working on producing energy management systems for electrified and fully-electric vehicles.

On the other end, NGK's acquisition of Denso's spark plug business could mean a more optimized production system for their ICE products, especially in terms of supply.

For now, the business transfer is subject to the approval of the competition law authorities of each country and region.