Turkish home appliance maker Arcelik to sell 60% stake in Hitachi joint venture
21/04/2026 09:40
April 21 (Reuters) - Turkish home appliance maker Arcelik ARCLK.IS has agreed to sell its 60% stake in Arcelik Hitachi Home Appliances to Hitachi Global Life Solutions under a share purchase agreement, the company said on Tuesday. Turkey is a major white goods producer but sales, exports and production in the sector in Turkey shrank last year as rising costs eroded competitiveness. Under the deal, Arcelik will receive $205 million in cash at closing, with deferred payments totalling $56 million to be paid in instalments over three years. The final price will be adjusted at closing to include 60% of Arcelik Hitachi's net cash exceeding $56 million, the company said in a statement. The transaction marks Arcelik's exit from the joint venture formed with Japan's Hitachi in 2020 and includes the transfer of 12 subsidiaries, among them manufacturing plants and R&D centres in China and Thailand. At 0704 GMT, Arcelik shares were around 3% higher, though still about 37% below their May 2024 peak. Hitachi 6501.T said the deal is part of a broader restructuring. It plans to fold its home appliances operations, including its remaining 40% stake in Arcelik Hitachi, into a new company to be set up under a strategic partnership with Japanese electronics retailer Nojima Corporation 7419.T. If that restructuring is completed, Arcelik's 60% stake will ultimately be acquired by the new company under Nojima's indirect control. If not, Hitachi will directly purchase Arcelik's stake. Completion is subject to regulatory approvals and the completion of Hitachi's planned spin-off. The parties expect closing within 12 months. Arcelik and local rival Vestel Elektronik VESTL.IS, recently flagged weak consumer demand in Europe and Asia as a key challenge. Vestel said the Turkish lira's real appreciation had pushed up labour costs in euro terms, while Arcelik pointed to sustained pricing pressure. Arcelik reported a full-year net loss of 8.36 billion lira ($186.23 million) in 2025 after a net profit of 2.21 billion lira in 2024. ($1 = 44.8896 liras) (Reporting by Canan Sevgili and Miraç Eren Dereli; Editing by Daren Butler and Susan Fenton) ((canan.sevgili@thomsonreuters.com;))