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NOJIMA shares continue to rise on reports of Hitachi home appliance business acquisition as company schedules board meeting
NOJIMA CORPORATION <7419> shares continued to rise on 21st following a Nikkei report that the major home appliance retailer has decided to acquire the home appliance business of HITACHI, LTD. <6501>. The acquisition price is estimated to exceed 100 billion yen. In response to the report, Nojima disclosed that the matter is "currently under consideration" and that it plans to submit the proposal to a board of directors meeting scheduled for today. The news has acted as a catalyst for the stock, as investors anticipate the creation of an integrated system for product development and sales, alongside improved profitability through high-value-added products.
According to the report, NOJIMA will acquire at least a majority stake in Hitachi Global Life Solutions (Hitachi GLS), a subsidiary of HITACHI, LTD. <6501>, to make it a consolidated subsidiary. Hitachi is expected to retain a partial stake in the unit. Market participants view this as a landmark move in the domestic retail sector, effectively transforming a traditional retailer into a vertically integrated manufacturer-retailer hybrid.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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