Arçelik Anonim Sirketi (IBSE:ARCLK) (Arcelik AS) is in advanced talks to take over overseas home appliance business of Hitachi, Ltd. (TSE:6501), people with knowledge of the matter said. An agreement may be reached as soon as the next few weeks, the people said, asking not to be identified because the information is private. The transaction could be valued at around $500 million, according to the people.

The potential deal would add to the $83 billion of divestments announced by Japanese companies in the year 2020, up 38% from a year earlier, according to data compiled by Bloomberg. Hitachi has separately invited bids for its listed metals unit as it seeks to streamline its business, Bloomberg News has reported. It also exited a U.K. nuclear project in September.

Arcelik has been discussing different deal structures that could include an outright purchase or forming a joint venture, the people said. A transaction wouldn't include Hitachi's domestic white-goods operations, which the Japanese company plans to keep, according to the people. No final decisions have been reached, and talks could still drag on or fall apart, the people said.

The Hitachi business has previously attracted interest from other suitors, according to the people. A representative for Arcelik declined to comment, while a spokesman for Hitachi said no decision has been made at this time as the company is considering ways to enhance its corporate value.