Mitsubishi Heavy Industries, Ltd. agreed to acquire remaining 35% stake in Mitsubishi Hitachi Power Systems, Ltd from Hitachi, Ltd..
December 17, 2019
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Mitsubishi Heavy Industries, Ltd. (TSE:7011) agreed to acquire remaining 35% stake in Mitsubishi Hitachi Power Systems, Ltd. from Hitachi, Ltd. (TSE:6501) on December 18, 2019. Hitachi recognizes a settlement of ¥200 billion as debt to Mitsubishi Heavy Industries, Ltd which will be paid as an offset amount by transferring Mitsubishi Hitachi Power Systems, Ltd for ¥70 billion and will make payment of ¥130 billion by March, 2020. Upon completion of the transaction, Mitsubishi Hitachi Power Systems, Ltd will become 100% subsidiary of Mitsubishi Heavy Industries, Ltd. Post-closing, Mitsubishi Hitachi Power Systems, Ltd. will be renamed as Mitsubishi Power, Ltd. The name change will be effective on September 1, 2020.
As on May 13, 2020, the Competition Tribunal of South Africa approved the deal.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
