Paloma Rheem Holdings Co., has made a tender offer to acquire all outstanding common shares of Fujitsu General Limited for $US1.64 billion to make Fujitsu General a wholly-owned subsidiary.
At a meeting of the Board of Directors of Fujitsu General Limited earlier this week, the Board expressed its support for the tender offer which is expected to commence in July 2025.
While both companies did not formally disclose financial details, a Bloomberg report valued the deal at more than $US1.6 billion.
Fujitsu General shares soared more than 20 per cent when the news was announced while parent company Fujitsu gained more than three per cent in Tokyo.
Paloma Rheem’s subsidiaries include Paloma Co, a key manufacturer in Japan’s gas water heater and gas stove market, and Rheem Manufacturing Company, which operates in the water heating and air conditioning sectors across North America, South America, Europe, and Australasia.
The Paloma Rheem Group (PRG) has headquarters in Nagoya, Japan. It acquired Rheem, which operates mainly in North and South America, Europe and Australia, in 1988.
PRG has bases in 15 countries and operations in 85 countries. It has approximately 16,000 employees worldwide, 35 production plants, and 16 research and development (R&D) facilities.
Fujitsu General's core business is air conditioning which is expected to expand over the medium to long term in response to the global trend toward decarbonisation.
Fujitsu General ANZ managing director, Philip Perham, said the company already has a cooperative relationship with Paloma Rheem Holdings.
“Through this proposed acquisition, both companies will be able to strengthen their competitiveness in the global market and achieve sustainable business growth into the future,” Perham said.
“Fujitsu General remains committed to reinforcing collaborative partnerships with all its valued partners and will continue to take all possible measures to provide a stable supply of products and services, as well as to engage in business activities with higher added value than ever before."
In 2016, Fujitsu General and Rheem established a collaborative partnership focused on mutual product supply and joint development in the North American air conditioning market and the two companies have been working closely ever since.