ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business deals

Hitachi to sell chemical and medical equipment units for $6bn

Buyers Showa Denko and Fujifilm step up as Japanese conglomerate reorganizes

Hitachi has been among the most aggressive Japanese conglomerate in selling off non-core assets while buying foreign businesses.

TOKYO (Reuters) -- Japan's Hitachi Ltd said on Wednesday it would sell its listed chemicals unit and diagnostic imaging business in a deal totaling 673 billion yen ($6.2 billion), as the Japanese industrial conglomerate overhauls its business portfolio.

Hitachi will sell its 51% stake in Hitachi Chemical for 494 billion yen to Showa Denko. Hitachi Chemical is a supplier of materials for semiconductors, displays and lithium-ion batteries.

Showa Denko said it was offering to pay a total of 964 billion yen for shares in Hitachi Chemical, including from Hitachi as well as the market.

Showa Denko beat rival bids from Nitto Denko Corp, U.S. buyout funds Bain Capital LP and Carlyle Group LP.

Hitachi's diagnostic imaging business will be sold to Fujifilm Holdings Corp for 179 billion yen as the Japanese photocopier and camera manufacturer deepens its push into health care.

The deal follows a recent series of acquisitions by Fujifilm, including a drugmaking business from U.S.-based Biogen Inc and two biotechnology units from JXTG Holdings Inc as growth at its legacy photocopy business stagnates.

Hitachi has been among the most aggressive of Japan's conglomerates in reorganizing its business, selling noncore assets while buying foreign businesses to expand digital businesses.

The Japanese government has also pointed out potential conflicts of interest between publicly traded parent companies and their listed subsidiaries and set corporate governance guidelines for those companies.

Hitachi expects the sale to generate 389 billion yen in special profits.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media