Hitachi forms strategic partnership with Nojima for home appliance growth

Hitachi Ltd. (TSE: 6501) announced it will establish a strategic partnership with Nojima Corporation to accelerate growth of its home appliance business through a new company structure.

Under the agreement, Hitachi Global Life Solutions will create a new company for its home appliance operations and transfer 80.1% of the shares to a special purpose company managed by Nojima. Hitachi GLS will retain 19.9% ownership in the new entity.

The transaction involves a transfer price of approximately 110 billion yen for the 80.1% stake, with the final amount subject to adjustments. The deal is expected to complete during fiscal year 2026, pending regulatory approvals.

The partnership will also affect Arcelik Hitachi Home Appliances B.V., a joint venture handling Hitachi-brand appliances in overseas markets. Hitachi GLS and Arcelik A.S. have entered into an agreement regarding Arcelik's 60% stake in this entity, with rights transferring to the new company.

Following the restructuring, the new company will become a consolidated subsidiary of Nojima and will continue manufacturing and selling Hitachi-branded home appliances from production through after-sales service.

Hitachi GLS will focus on its air conditioning business within Hitachi's Urban Solutions & Services Business Unit after the transaction. The company plans to strengthen integrated service offerings for building and facility management alongside other Hitachi subsidiaries.

The transaction's impact on Hitachi's consolidated financial statements is described as not material. Hitachi stated it will use proceeds according to its capital allocation policy to support growth objectives under its "Inspire 2027" management plan.

The information is based on a company press release statement.

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