Paloma to acquire Fujitsu General for $1.63bn
6th January 2025JAPAN: The Fujitsu board has backed an offer of JPY256bn ($1.63bn) for its Fujitsu General air conditioning business from Paloma Rheem Holdings, owners of US HVACR manufacturer Rheem.
Paloma is a global corporate group, headquarters in Nagoya, Japan, involved in both air conditioning and hot water businesses. It acquired Rheem, which operates mainly in North and South America, Europe and Australia, in 1988.
Fujitsu owns around 40% of the business. Other shareholders include the Bank of Japan, JP Morgan and Goldman Sachs.
Rheem and Paloma have had a collaborative relationship in the air conditioning business in North America since 2016 This has included mutual product supply and joint development.
In addition to AC, Fujitsu General is involved in businesses of information and communication systems and electronic devices.
Fujitsu first announced it was seeking a “quick sale” of its stake in Fujitsu General In January 2023. Swedish heat pump company showed early interest, along with investment companies KKR and Bain Capital.
The tender offer is planned to start in July after coordination with domestic and international regulatory authorities.