Fujitsu Ltd. has announced the sale of its 44% stake in Fujitsu General Ltd. to Paloma Rheem Holdings Co., Ltd., for approximately $582 million (¥92 billion). The move is part of Fujitsu's strategic realignment to focus on its core IT and technology services business.
Paloma Rheem, the parent company of gas appliance manufacturer Paloma Co., plans to spend up to $1.62 billion (¥256 billion) through a tender offer to acquire full ownership of Fujitsu General. The tender offer price is set at ¥2,808 per share, a 24% premium to the closing price on Jan. 6, 2025. The tender offer is expected to begin around July 2025, pending regulatory approvals in Japan, the EU, India, Saudi Arabia, and the United States.
Fujitsu General, a key player in the air conditioning industry, has seen significant demand for its energy-efficient products globally. Despite this, Fujitsu Ltd. has been moving away from non-core businesses, including the sale of Shinko Electric Industries Co. and plans to divest from battery maker FDK Corp., to focus on IT systems and digital transformation.
For Paloma Rheem, acquiring Fujitsu General strengthens its presence in the HVAC sector and complements its existing capabilities. The integration of Fujitsu General’s expertise in energy-efficient air conditioning with Paloma Rheem’s gas appliance technologies is expected to generate synergies, particularly in the North American and Asian markets.
This acquisition also reflects a broader trend of consolidation in the HVAC sector, driven by increasing demand for sustainable solutions and stricter decarbonization regulations worldwide.
