Turkish multinational household appliances manufacturer Arcelik is reportedly holding discussions to acquire the Japanese industrial conglomerate Hitachi’s overseas home appliance business.
According to the sources, both companies may reach an agreement as soon as the next few weeks and the transaction could be valued at around $500 million.
The proposed deal will add 38 percent to the $83 billion in divestments announced this year by Japanese firms, as per the report. Hitachi has separately invited bids for its listed metals unit as it seeks to streamline its business. Meanwhile, it has also quit a UK nuclear project in September.
Istanbul-based Arcelik has addressed various contract arrangements that could involve a direct purchase or the establishment of a joint venture. The deal does not involve Hitachi’s domestic white-goods activities, which the Japanese business plans to retain, stated a reliable source.
Hitachi had previously attracted interest from other investors to enhance the business, according to the reports. The representatives from Arcelik declined to comment on the agreement.
One of the largest domestic appliance manufacturers in Turkey, Arcelik sells products under 12 brands, including Beko, Flavel, Grundig, and Altus. It has expanded through acquisitions over the years, purchasing companies including South Africa’s Defy Appliances and Pakistan’s Dawlance Group. The Turkish firm described the Asia Pacific region as a key growth market and agreed last year to acquire ownership of the company running the Singer brand in Bangladesh.
Hitachi, headquartered in Tokyo, provides business services ranging from IT, including Artificial Intelligence (AI) and big data, to infrastructure. It intends to help society through the development of superior, original technology and products.