Hitachi Home jumps 15% as parent firm agrees to divest stake into global JV1 min read . Updated: 22 Jan 2015, 03:53 PM IST
Hitachi Appliances, Hitachi and Johnson Controls have entered into a definitive agreement to form a global JV
Mumbai: Hitachi Home and Life Solutions (India) Ltd shares rose as much as 15% in morning trade on Thursday after the company said its parent firm Hitachi Appliances Inc. has agreed to divest its stake in the firm into a global joint venture.
Shares were trading up 15.6% at ₹ 1,126.10 apiece at 11:11am on BSE, while the benchmark Sensex index rose 0.3% to 28,982.02 points.
Hitachi Appliances, Hitachi Ltd and Johnson Controls Inc. have entered into a definitive agreement to form a global joint venture, Hitachi said in a statement at the World Economic Forum (WEF) in Davos. The joint venture will allow these firms to deliver a diverse technology portfolio in the heating, ventilation, air conditioning and refrigeration industry.
Through the agreement, Johnson Controls will obtain a 60% ownership stake in Hitachi Appliances’s more than $2.6 billion global air-conditioning businesses excluding sales and service operations in Japan. This includes Hitachi’s India business.
The new joint venture will have approximately 13,800 employees and 24 manufacturing facilities. The transaction is expected to close later in the year, subject to regulatory approvals and satisfaction of other customary conditions, the statement said.
Johnson Controls is a 130-year-old global multi-industrial company, which supplies heating, ventilation, air-conditioning, building controls, refrigeration and security systems for buildings.