Johnson/Hitachi deal delayed
12th November 2014
USA: Johnson Controls’ air conditioning joint venture deal with Hitachi is not now likely to happen until the first half of next year.
Johnson Controls announced in December 2013 that it was to buy 60% of Hitachi Appliances’ global air conditioning business. Excluding sales and service operations in Japan and certain other assets, the partnership was devised to include commercial and residential VRF and inverter technologies.
According to the Milwaukee Business Journal, the deal, which was planned to be completed by the end of this year, will not now happen before the first half of 2015.
Speaking to financial analysts in Chicago, yesterday, Johnson Controls’ executive vice president and vice chairman Bruce McDonald revealed that there had been “separation issues” which had delayed the deal.
Explaining the difficulties, he said: “It’s been very complicated to carve out of Hitachi. It’s very integrated in not just their appliance business, but some of their other campuses. So it’s taken us a long time to get the audited financials, agree on all of the carve-out issues around transfer pricing and things like that.”
Related news:
Johnson Controls takes 60% of Hitachi ac – December 3, 2013
USA and JAPAN: Johnson Controls is to take a 60% stake in Hitachi Appliances’ global air conditioning business. Read more…
