Japanese conglomerate Hitachi Ltd is nearing a deal to sell its 51% stake in Hitachi Chemical Co Ltd to Showa Denko KK in a transaction that could be worth about 950 billion yen ($8.7 billion), the Nikkei https://asia.nikkei.com/Business/Business-deals/Hitachi-nears-sale-of-core-chemical-unit-to-Showa-Denko reported on Monday.
Following the sale, Showa Denko, a chemical engineering group, buy the rest of Hitachi Chemical’s outstanding shares through a tender offer, the newspaper said.
Showa Denko said in a statement it was considering various options to boost its corporate value including the purchase of shares in Hitachi Chemical but that nothing had been decided.
Officials at Hitachi and Hitachi Chemical said the report was not based on anything they had announced.
Hitachi Chemical shares soared 16% in price in morning Tokyo trade while those of Hitachi climbed more than 3%. Showa Denko shares fell as much as 8.7%.
Hitachi last month narrowed suitors for the chemical unit to a handful of bidders including Nitto Denko Corp and U.S. buyout funds Bain Capital LP and Carlyle Group LP.
Hitachi has been among the most aggressive of Japan’s conglomerates in reorganising its business, selling non-core assets while buying foreign businesses to expand overseas.
Other divestiture includes chip-making equipment manufacturer Hitachi Kokusai Electric and power tool unit Hitachi Koki.
Hitachi Chemical makes materials for semiconductors, displays and lithium-ion batteries. ($1 = 108.64 yen)
By Arunima Kumar and Junko Fujita
Source: Reuters
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?
