Chinese automotive parts maker Ningbo Joyson Electronics has set its sights on taking over debt-ridden Japanese air bag maker Takata Corporation, which is currently filing the largest bankruptcy case in the country's manufacturing history.

Shanghai-listed Joyson announced on Monday that its wholly owned subsidiary KSS Holdings Inc had signed a memorandum of understanding with Takata to acquire the latter's assets, excluding its ammonium nitrate propellant business.

The transaction is estimated at around $1.59 billion, according to the announcement. But the deal is still subject to following due diligence and negotiations, as well as the approval of the world's 14 leading vehicle manufacturers and Takata's bankruptcy commissioner.