Fair Lawn, N.J. - Hitachi released a statement today expanding on its previous announcement that it would purchase the remaining shares of Hitachi Maxell, Ltd., making the unit a wholly owned subsidiary.
Hitachi said the tender offer to acquire the common stock of Hitachi Maxell "will lead to the improvement of the enterprise value of Hitachi Maxell and the Hitachi Group as a whole."
The companies' intention to integrate management of the companies "will help optimize all of the Hitachi Maxell businesses, enabling larger scale and more effective investments in resources such as R&D and capital investments. Both companies expect tighter technological collaborations based on the integrated management of Hitachi and Hitachi Maxell, generating greater synergies."
The acquisition is also expected to improve the collaborative efforts of Hitachi and Hitachi Maxell in such areas as lithium-ion batteries, where both companies have been using Hitachi's laboratories in the development of consumer-use lithium-ion rechargeable batteries. In addition, both groups will benefit from access to Hitachi Maxell's newly established electrode manufacturing plant.
All of the Hitachi Maxell businesses, including computer tape, videotape for broadcasting and consumer blank recordable media products, are expected to be positively impacted by the acquisition, Hitachi said. Maxell-branded storage products "will benefit from faster product development and the convergence of resources, utilizing each company's expertise in order to optimize efficiencies. Hitachi recognizes the strength of the â€˜Maxell' brand name and sales channel experience worldwide and believes that the acquisition will be significantly beneficial to its consumer sales capabilities," the statement read.