The $200 million deal is expected to be completed by November
Japanese firm Toshiba Corporation has announced its decision to acquire Hyderabad-based Vijai Electricals in a deal worth $200 million.
$200 million deal
Toshiba announced that it would acquire a major part of Vijai’s electricity transmission and distribution business for about $200 million and the process would be completed by November this year. The acquisition forms part of Toshiba’s efforts to enhance its production base in the country. As part of the agreement, Toshiba would establish a new company that would absorb the acquired business and also integrate its state-of-the-art design and manufacturing technologies for the T&D systems.
The new entity would enter other growing markets, including power electronics systems such as high voltage direct current transmission and compensators for high voltage networks besides railway power supply systems. The two companies said in a release that Toshiba would position the new company as a core production base for expanding its T&D business in the domestic as well as global markets. “The acquisition is necessary for our global T&D strategy and Vijai’s products and sales channel provide us with an ideal fit for our T&D business in India and beyond,” Takeshi Yokota, Toshiba’s Corporate Vice-President, said in a statement. Vijai Electricals Chairman Dasari Jai Ramesh said the company would provide a powerful platform to Toshiba for its business growth and market expansion.