Mitsubishi Electric to takeover DeLclima
ITALY – The Mitsubishi Electric Corporation has announced that it is to enter into an agreement to purchase from De’Longhi Industrial S.A. shares representing approximately 74.97% of the share capital of DeLclima S.p.A., an Italian company engaged in the commercial air conditioning products business. Upon completion of this transaction, a mandatory tender offer will be launched by Mitsubishi Electric in order to acquire the remaining shares representing approximately 25.03% of the share capital of DeLclima, in compliance with Italian financial law and CONSOB regulations.
The purchase price for 100% of DeLclima’s shares is expected to reach approximately €664 million. In order for the transaction to be completed, the acquisition requires clearance from antitrust authorities and the completion of the sale of DL Radiators S.r.l., an indirect subsidiary of DeLclima. DL Radiators will therefore be sold to a company affiliated with De’Longhi Industrial the transaction can be closed. It is anticipated that the transaction will be completed by the end of November 2015.
Mitsubishi Electric already has a strong global presence in the area of heating, ventilation and air conditioning systems in markets such as Japan, Europe, North America, China, Southeast Asia, India and Australia, and the company see Europe in particular is an important market after its home Japanese market. The company sees potential for growth as the European air conditioning market matures, since it will require further market players both to provide value-added products such as energy-saving products and to comply with environmental regulations (F-Gas regulations). Mitsubishi Electric considers that room and packaged air conditioning as well as multi air conditioning for buildings will play an important role in the future of the market and has grown its business in the region consequently.
The proposed acquisition of DeLclima represents Mitsubishi Electric’s full-scale entry into the chillers business and will, they hope, enable the company to expand its business portfolio, which will be important in achieving continuous growth and increasing market presence. In addition to this, the company expects that the acquisition will allow Mitsubishi Electric to adequately respond to environmental regulations (F-Gas regulations), which are anticipated to become even more important in the coming years.
DeLclima’s subsidiaries include companies such as Climaveneta S.p.A. and RC Group S.p.A. Climaveneta boasts the leading market share in Europe and is recognised as being a strong brand which is known for its high quality in the chillers business, while the RC Group specialises in air conditioning for server rooms. Demand for chillers is expected to remain strong in Europe, which is why Mitsubishi Electric consider the transaction to be of high strategic importance.
By acquiring DeLclima, Mitsubishi Electric hopes to enhance its product lineup for large commercial machines, especially for chillers, and to establish itself as a comprehensive provider of HVAC systems ranging from residential to commercial. Mitsubishi Electric hope that marrying their solution-type business with DeLclima’s system-solution capabilities will increase the company’s competitiveness and enlarge its business, as well as strengthening the company’s global presence via DeLclima’s existing reputation, particularly in China.