Contemplates Selling Japanese Home Appliance Division, Reports Nikkei
In a significant development, Japanese conglomerate Hitachi is considering selling its domestic home appliance business, with South Korea's Samsung Electronics and LG Electronics among the potential suitors. The deal, reportedly valued at around 100 billion yen ($679.49 million) or more, could mark a strategic move for both Korean giants to strengthen their foothold in the Japanese home appliance market.
According to a report by the Nikkei newspaper, Samsung Electronics is actively considering acquiring Hitachi's home appliance division in Japan. LG Electronics is also competing for the acquisition. Other potential suitors include Turkey's Archelik and several Chinese home appliance manufacturers. Archelik previously acquired Hitachi’s overseas home appliance business in 2020.
Hitachi is aiming to sell its domestic home appliance subsidiary as it shifts its business strategy toward digital services and post-sale revenue models. The sale would allow Samsung and LG to expand in a market where Japanese brands face increasing competition from other Asian competitors.
The final preferred bidder is expected to be selected by October 2025, with the successful bidder announced in December 2025. However, the report does not specify a timeline for the potential sale or whether Hitachi has received any offers yet.
Hitachi has not responded to a request for comment regarding the potential sale. The sale is focused on the domestic market and is part of Hitachi's continued effort to prioritize the group's social infrastructure and digital sectors.
The exchange rate at the time of the report was $1 = 147.1700 yen. Neither Hitachi nor Samsung Electronics have responded to a request for comment regarding the potential sale of Hitachi's home appliance business.
[1] Nikkei Asia: Samsung, LG in race for Hitachi's home appliance business in Japan [2] Reuters: Samsung, LG among suitors for Hitachi's home appliance unit - Nikkei [3] Bloomberg: Samsung, LG Electronics Eye Hitachi's Home Appliance Unit for Japan Expansion [4] Yahoo Finance: Samsung, LG in race for Hitachi's home appliance business in Japan [5] CNBC: Samsung and LG eyeing deal for Hitachi's home appliance business in Japan
- The potential sale of Hitachi's domestic home appliance business could leverage technology and finance resources from companies like Samsung Electronics and LG Electronics, helping these businesses strengthen their position in the competitive Japanese market.
- As Hitachi aims to transition its business strategy towards digital services and post-sale revenue models, the sale of its home appliance subsidiary could enable technology companies such as Samsung and LG to expand their business in Japan, bolstered by the integration of Hitachi's existing technology resources.
