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
During a European Industry Summit held on the site of BASF in Antwerp, leaders from basic industry sectors, representing 7.8 million workers in Europe, joined forces with European trade unions and European leaders to address pressing concerns regarding Europe’s industrial landscape.
The use of blue or low-carbon hydrogen, made from natural gas with carbon capture and storage (CCS), could increase near-term global warming by 50% compared with burning fossil fuels directly for energy if emissions are not properly managed, according to a new study by NGO the US Environmental Defense Fund (EDF) and the University of Arizona.
In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.