A bold move to reshape the global air conditioning and water heating market with innovation and sustainability at its core.
On January 6, 2025, in Tokyo (Japan), Paloma Rheem Holdings announced plans to acquire Fujitsu General Ltd. (TSE: 6755) through a public tender offer. The deal is set to start around July 2025, once regulatory approvals are cleared.
Paloma Rheem is a global group combining Paloma, a Japanese leader in gas appliances, and Rheem Manufacturing, a major player in heating and cooling solutions across North America, South America, Europe, and Australia. The acquisition aims to strengthen their long-standing partnership with Fujitsu General, which began in 2016 through joint development and product supply in the North American air-conditioning market.
Under the agreement, Fujitsu, the parent company of Fujitsu General, will sell its 44.02% stake after the tender offer through a share buyback procedure. This means Fujitsu General will become a wholly owned subsidiary of Paloma Rheem. The tender offer price has been set at 2,808 yen per share, reflecting up to a 39.15% premium compared to Fujitsu General’s average stock prices over the past six months. Fujitsu General’s board has unanimously approved the deal and recommended shareholders to accept the offer.
Looking ahead, this integration is expected to accelerate innovation by combining air conditioning and water heating technologies, while also supporting global decarbonization goals. By leveraging both companies’ sales networks and service systems, the group aims to create more comprehensive solutions for residential, commercial, and industrial customers worldwide. If successful, this acquisition could reposition Japan as a hub for next-generation sustainable air and water solutions, with global impact on energy efficiency and climate action.
Explanation of Key Terms
- Tender Offer (公開買付け): A method where a company offers to buy shares directly from existing shareholders at a fixed price, often higher than the market value, to gain control of another company.
- Premium: The extra percentage paid above the market price to make the offer attractive to shareholders.
- Decarbonization: The global effort to reduce carbon dioxide emissions, often through cleaner technologies and energy-efficient solutions.
