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Hitachi divesting chemical unit: Reuters
Posted on Thursday, 11 July 2019 09:42
Japanese conglomerate Hitachi has initiated the planned sale of its chemical unit, known as Hitachi Chemical Co, according to Reuters.
Four people in the know told the news provider the company has set a deadline of 9th August for initial bids.
The sources, who did not wish to be identified as the matter is private, added that global private equity firms including Bain, Carlyle and KKR, as well as Japanese companies, are expected to be attracted to the deal.
They noted that Bank of America and Goldman Sachs have been appointed to advise on the process.
Hitachi has thus far declined to comment on the report.
A sale of the chemical business has been on the cards for a few months; in March, reports suggested Hitachi could be looking to offload around 51.0 per cent of the unit, which was founded in 1962 and employs 6,523 people.
Around a month later, the Nikkei reported that a divestment could be worth between JPY 600.00 billion and JPY 700.00 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows there were 5,035 deals worth a combined USD 379,121 million targeting chemical manufacturers announced worldwide during 2018, compared to the 4,287 worth USD 324,787 million signed off in 2017.
Since the start of 2019, there have been 2,299 deals worth a combined USD 339,072 million announced in the sector.
Of these, the most valuable was announced in January, when Bristol-Myers Squibb agreed to pick up Celgene for USD 74.00 billion.
This was followed by a USD 69.10 billion transaction in which Saudi Arabian Oil Company signed on the dotted line to take over a 70.0 per cent stake in Saudi Basic Industria Corporation. Completion of that deal remains subject to regulatory approvals, among other conditions.
© Zephus Ltd