Shares of Nojima Corp (TYO:7419) climbed after reports emerged that the electronics retailer is planning to acquire a majority stake in Hitachi Global Life Solutions for in excess of 100 billion yen ($630 million).
According to the report, the transaction - if it comes to fruition - would represent Nojima's largest acquisition to date. Hitachi Global Life Solutions is the unit within Hitachi (TYO:6501) that manages the company's domestic white goods business, including refrigerators and washing machines.
On the Tokyo market, Nojima's stock jumped 10% to 1,231 yen by 05:24 GMT following the report.
Executives at Nojima are said to be pursuing the purchase to bolster the retailer's product development capabilities and to reduce exposure to severe price competition in Japan's mature electronics retail segment. The company has been pursuing growth through acquisitions and last year completed the purchase of PC maker Vaio.
Hitachi Global Life Solutions recorded revenue of about 367.6 billion yen in the fiscal year ended March 2025, the report stated.
Other parties that had been named as potential bidders for the consumer-appliances unit include Samsung Electronics (KS:005930), LG Electronics (KS:066570), and private equity firm KKR (F:KR51).
The reported discussions come as Hitachi continues to streamline its operations and concentrate on its digital platform strategy, the report added. Observers noted that the proposed deal would reshape Nojima's scale and product mix should it proceed, while also aligning with Hitachi's stated operational priorities.
Market takeaway - The report sparked a swift market reaction for Nojima, reflecting investor interest in deal-driven growth and the strategic value of control over a domestic white goods business. For Hitachi, the potential divestiture is consistent with reported efforts to sharpen focus on its digital platform initiatives.