In December 2020, Japanese Company Hitachi announced that it would sell off 60% of its home-appliances business to Turkish machine outfit Arçelik for $300 million.
With the deal, Hitachi intends to extend sales of home machines—right now 80% homegrown—into Europe, Africa and somewhere else in Asia, where Arçelik has a solid and growing presence.
The arrangement is important for Hitachi’s continuous system to de-underline lines of business outside its center focus of information technology.
About two months ago, Hitachi began accepting offers for its 53% stake in Hitachi Metals, a recorded unit that supplies the guard business.
The outfit additionally said it would sell part of its stake in another auxiliary, Hitachi Construction Machinery, which makes programmed driving systems utilized in construction machinery.
For Arçelik, which is essential for the Turkish modern combination Koç Group, the arrangement is important for a comparative technique to spread its wings universally—for this situation, to broaden outside the contracting Turkish economy.
It follows the March 2019 acquisition of a 57% stake in Singer Bangladesh, an appliance retailer and TV and refrigerator manufacturer, and an earlier series of deals zeroed in on expanding the Turkish company’s reach in Asia.
