A Japanese-headquartered company better known for its range of ovens and water heaters, Paloma Rheem Holdings, has made an offer to acquire Fujitsu General for around ¥257 billion (A$2.59 billion).
Fujitsu General is Fujitsu’s air conditioning unit and specialises in air conditioning solutions for residential, commercial, and industrial uses and related IT systems and devices.
In Australia, its air conditioners are ranged at retailers such as The Good Guys and Harvey Norman.
Paloma Rheem Holdings has offered to pay Fujitsu General stockholders ¥2,808 (A$17.82) a share. Parent Fujitsu will also sell its stake in the unit for roughly ¥92 billion.
If the deal does go through, it would make Fujitsu General a wholly owned subsidiary of Paloma Rheem Holdings.
The two companies have previously collaborated. In 2016, Fujitsu General and Rheem established a partnership focused on mutual product supply and joint development in the North American air conditioning market, and the two companies have worked together ever since.
Rheem says that the combined companies “will be able to expand competitive solutions in the air conditioning sector across global markets, while also enhancing customer responsiveness through an integrated sales and service network.”
Fujitsu General meanwhile indicated that although the market for air conditioners is expected to expand over the medium to long term, the global trend toward decarbonisation, as well as intensifying competition in the global marketplace, makes a sound case for this deal to go through.
Philip Perham, managing director, Fujitsu General Australia and New Zealand, said, “Fujitsu General already has a cooperative relationship with Paloma Rheem Holdings. Through this proposed acquisition, both companies will be able to strengthen their competitiveness in the global market and achieve sustainable business growth into the future.”
At a board meeting of Fujitsu General last week, the board members unanimously endorsed the tender offer, which is expected to commence in July this year, subject to regulatory approvals.