Bain, Carlyle among shortlisted bidders for Japan’s Hitachi Chemical

Photo by Louis Reed on Unsplash

Japan’s Hitachi Ltd has narrowed suitors for its $6.8 billion chemical unit to a handful of companies including Bain Capital and Carlyle Group LP, people with knowledge of the deal said.

Bain is teaming up with Tokyo-based private equity firm Japan Industrial Partners in its offer, the people said, adding that Nitto Denko Corp, a maker of materials for chips and automotive products, is also among the shortlisted bidders for Hitachi Chemical Co.

The companies have been asked to submit offers in the second round of bidding by next month, two of four sources said.

The list will be cut to two bidders by the end of the year, with the winning bid selected in the new year, said one of the sources.

Each bidder is seeking to buy all shares in Hitachi Chemical, which is 51.2% owned by Hitachi, a separate source said.

The people spoke on condition of anonymity because the information has not been made public. All of the companies declined to comment.

Hitachi has been among the most aggressive of Japan’s conglomerates in reorganizing its business, selling non-core assets while buying foreign businesses to expand overseas.

Other divestitures include chip equipment maker Hitachi Kokusai Electric and power tool unit Hitachi Koki.

Hitachi Chemical, which makes materials for semiconductors, displays and lithium-ion batteries, has a current market value of 733 billion yen ($6.8 billion). Its shares have risen about 80% in the past 12 months, partly due to speculation of a bidding war.

As part of its efforts to expand overseas, Hitachi is exploring a bid for the elevator division of Germany’s Thyssenkrupp, a business valued anywhere between 12 billion and 17 billion euros ($13.2-$18.7 billion), financial sources have said.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.