Paloma Rheem Holdings Co. plans to acquire Fujitsu General Ltd. in a 2,808 yen-per-share tender offer, valuing the Japanese air-conditioner manufacturer at about 294 billion yen (US$2.4 billion).
The proposed deal would expand Rheem’s global footprint by adding Fujitsu General’s strong presence in heat pump technology and energy-efficient air conditioning systems. Fujitsu Ltd., which holds a 44% stake, has agreed to sell its entire holding.
The offer represents a 21% premium to Fujitsu General’s last closing price. The tender period will last 21 business days once launched, which is expected around July 2025 pending regulatory approvals in five jurisdictions including the U.S. and EU.
The acquisition would help Rheem, primarily focused on North American markets, tap into Fujitsu General’s manufacturing bases in Asia and distribution networks in Europe. Cost synergies are expected through joint procurement of raw materials and optimized production.
“This deal accelerates our global expansion strategy while adding crucial technology capabilities in heat pumps and inverters,” said Hiroaki Kobayashi, president of Paloma Rheem.
The transaction requires antitrust clearances in multiple regions. Rheem plans to delist Fujitsu General after completing the tender offer and subsequent squeeze-out procedures.
The deal marks another divestment by Fujitsu Ltd. as it focuses on its core digital transformation business. The company had signaled plans to sell its stake in Fujitsu General since late 2022.
Goldman Sachs and Mizuho Securities advised on the transaction. The deal is expected to close by late 2025.
