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Turkish white goods producer Arcelik has struck a deal to transfer its majority stake in a joint venture with Hitachi for up to $261 million, reshaping its Asia-Pacific structure as it sharpens its focus on core markets.
The company agreed to sell its 60% stake in Arcelik Hitachi Home Appliances (AHHA) to its Japanese partner, Hitachi Global Life Solutions, ending the Bangkok-based partnership formed in 2021 to expand global sales of Hitachi-branded products outside Japan.
Under the deal, Arcelik will receive $205 million upfront at closing, with another $56 million paid in installments over the next three years, while also collecting 60% of AHHA’s cash above $56 million at closing; the transaction is expected to be completed within 12 months, subject to standard conditions.
Until the deal is finalized, AHHA will continue operating under existing joint venture agreements. The transaction also covers 12 subsidiaries, including one production facility and one R&D center in China, as well as two production facilities and one R&D center in Thailand.
The move clears the way for Arcelik to focus on its core markets, including Türkiye, Europe, the Middle East, Africa and South Asia, the company said, adding that its broader commitment to high-growth markets such as India, Pakistan and Bangladesh remains unchanged.
Following the announcement, the company’s shares traded on the Borsa Istanbul opening Tuesday’s session up 3%.
Arcelik, a subsidiary of Koc Holding, ranks among Türkiye’s largest home appliance and electronics manufacturers, operating 38 facilities across 13 countries in Europe, Asia, and Africa.
In 2025, the company reported a 13% decline in revenue in Asia to ₺51.3 billion ($1.3 billion), while overall revenue slipped 6.6% to ₺523.9 billion ($13.25 billion).
"Despite strong growth in Taiwan, Bangladesh, and Pakistan, a sharp contraction in China and persistent stagnation in markets such as Thailand, Japan, Indonesia, Malaysia, and Singapore were the main factors behind the weak performance," the company noted in its latest annual financial report.
It also decided to halt production at its refrigerator plant in Rayong, Thailand, by the end of 2025.
Koc Holding Durable Consumer Goods Group President Polat Sen framed the deal as a long-term positioning move rather than a short-term gain, noting that Arcelik will continue its global expansion.
Arcelik CEO Can Dincer described the divestment as part of a more focused and selective global operating model. He highlighted that the partnership had helped establish a strong premium positioning for the Hitachi brand across the Asia-Pacific and MENA regions.
"This step reflects our approach to shaping global operations in a more strategic and disciplined way," Dincer noted, adding that the decision does not alter the company’s long-term ambitions in South Asia.
He also emphasized continued investment in Türkiye, pointing to innovation, energy efficiency, digitalization and AI-driven technologies as key pillars of future growth.
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