Turkish home appliance maker Arcelik to sell 60% stake in Hitachi joint venture (updated)
21/04/2026 11:50
Arcelik to sell its 60% stake in Arcelik Hitachi to Hitachi
Deal is expected to generate over $300 million in proceeds -analyst
CEO Can Dincer said Arcelik will focus on South Asian growth markets
Adds Arcelik CEO comment and analyst comment and updates share move
By Canan Sevgili and Mirac Dereli
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.
Arcelik Chief Executive Can Dincer said the company's exit from its East Asia‑focused subsidiary would allow it to concentrate on growth opportunities in South Asia.
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.
Dincer said in a statement that the decision to sell was specific to the joint venture structure and does not reflect a change in Arcelik's long‑term strategy towards the region.
"Our long‑term commitment to South Asia remains unchanged," he said. "We continue to believe in the region's growth potential and will maintain our investments in key markets, notably India, Pakistan and Bangladesh."
WEAK DEMAND IN EUROPE
Cemal Demirtas, an analyst at brokerage Ata Yatirim, said he expects the sale, which is projected to take six to seven months, to generate more than $300 million in proceeds for Arcelik once excess cash at the subsidiary is included.
Demirtas said the cash inflow would help reduce Arcelik's debt, adding that he expects the company to benefit positively from the streamlining of its operations.
He said Arcelik Hitachi, together with its subsidiaries, accounts for around 6% of Arcelik's consolidated revenue.
Arcelik shares rose as much as 3% in early trade before paring gains to trade 1% higher at 0946 GMT.
The shares remain about 37% below their May 2024 peak, but are up around 18% year to date.
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;))