Hitachi to Sell Chemical Unit, Diagnosis Imaging Equipment Biz
Tokyo, Dec. 18 (Jiji Press)--Japanese machinery giant Hitachi Ltd. <6501> said Wednesday that it will sell subsidiary Hitachi Chemical Co. <4217> to Showa Denko K.K. <4004> and its diagnosis imaging equipment business to Fujifilm Holdings Corp. <4901> for a total of about 700 billion yen.
Hitachi aims to speed up the reorganization of its group businesses in the three years to fiscal 2021. Proceeds from the sales will be invested into research and development related to the internet of things, of IoT, Hitachi's pillar of growth, and business acquisitions.
Hitachi Executive Vice President Toshikazu Nishino told a press conference that the company "will place greater focus on digital businesses by further accelerating selection and concentration."
Showa Denko, a major chemical maker, will launch a tender offer in mid-February next year to buy shares in Hitachi Chemical, listed of the first section of the Tokyo Stock Exchange, for 4,630 yen per apiece. Hitachi plans to sell all of its 51 pct stake in Hitachi Chemical in the tender offer.
Showa Denko plans to acquire the rest of Hitachi Chemical shares as well from other shareholders to make it a fully owned subsidiary.
[Copyright The Jiji Press, Ltd.]