Hitachi GLS has agreed to sell its 40% stake in Johnson Controls-Hitachi Air Conditioning to Bosch for $1.4 billion, while retaining control of the Shimizu Factory to enhance its air conditioning operations in Japan.

Information on the Target

Hitachi Global Life Solutions, Inc. ("Hitachi GLS"), a subsidiary of Hitachi, Ltd., has entered into share purchase agreements to transfer its shares in Johnson Controls-Hitachi Air Conditioning Holding (UK) Ltd ("JCH") to Bosch, thereby strengthening its position within the air conditioning industry. JCH is a joint venture between Hitachi GLS and Johnson Controls International plc ("JCI"), focused on the design, manufacturing, and distribution of air conditioning products. Under this new agreement, Hitachi GLS will transfer its 40% ownership stake in JCH to Bosch for a purchase price of USD 1.4 billion.

This strategic decision allows Hitachi GLS to retain a foothold in the industry while acquiring JCH's Shimizu Factory, which serves as a key development and manufacturing facility for commercial air conditioning equipment. This acquisition positions Hitachi GLS to manage the entire process in Japan, encompassing development, manufacturing, sales, and maintenance services, ultimately improving its product offerings for competitive market demands.

Industry Overview in Japan

The air conditioning industry in Japan continues to grow and innovate, driven by rising temperatures and a shift towards energy-efficient solutions. With increasing consumer awareness of environmental impacts, there has bee