Nagoya, Japan — Fujitsu Limited is selling its shares of Fujitsu General to Paloma Rheem Holdings.
As per the agreement, Paloma Rheem will acquire 44.02 per cent of the Fujitsu General shares. The transaction is expected to cost $1.63 billion.
“We are very pleased to announce that Paloma Rheem and Fujitsu General have agreed to collaborate fully together while respecting Fujitsu General’s independence,” said Hiroaki Kobayashi, representative director and president of Paloma Rheem.
Paloma Co. Ltd, founded in 1911 in Nagoya, Japan, is involved in the air conditioning and hot water sectors. In 1988, Paloma purchased Rheem Manufacturing Company.
Fujitsu General was first established in 1936 under the name Yao Shoten Ltd. In 1984, the business allied with Fujitsu.
The tender offer is expected to start in July. Fujitsu will still own 40 per cent of the business. Other stakeholders include the bank of Japan, JP Morgan and Goldman Sachs.