As part of the agreement, Hitachi will acquire a 4.5% equity share in
Toyo Denki Seizo, which will in turn purchase a 0.0046% stake in its
larger partner.

Both companies produce traction systems, including
converters and inverters, as well as auxiliary power supplies. Toyo
Denki specialises in DC control and drive systems together with
mechanical equipment such as pantographs and driving gear units, while
Hitachi has experience in AC control and drive equipment for high-speed

The two companies says they will also look into the possibility of joint product design and development.