Japanese firm Hitachi Chemicals has bought the majority share of lead-acid battery maker Fiamm.
The Italian company’s board of directors chose to sign an agreement allowing Hitachi to obtain 51% of the shares of FIAMM Energy Technology.
The new company will be called Fiamm Energy Technology Spa and concentrate on both the automotive and industrial sector.
Hitachi Chemical will pay roughly 10.2 billion yen ($90.5 million) for a 51% stake in the firm, according to Asian Nikkei Review report.
The agreement also sets out the creation of a joint venture with Hitachi Chemical, a part of the Hitachi Group.
The partnership is due to be finalised by February 2017.
A Fiamm spokesman told BEST magazine: “Our partnership with Hitachi Chemical represents a big opportunity for FIAMM to become more competitive in the world of batteries.
“Recognition of the value of FIAMM professionalism and technology constituted a condition of the agreement. The agreements ensure continuity of the present management and maintain FIAMM headquarters and production units in Italy.
“This new partnership will allow FIAMM to expand and further increase the effectiveness of its market penetration. The factories, and employment generally, will benefit from the new shareholder because the agreement reached will favour FIAMM’s path of technical, productive and commercial growth.”
Hitachi aims to increase its market share of the electricity storage market by expanding production capacity and its global presence, although no new plants are planned.
The deal comes after a two-year assessment process by Fiamm to find an industrial partner to strengthen the strategic assets of the Group, which produces lead-acid SLI batteries.
Fiamm website claimed the deal would help it to improve its brand, manufacturing facilities and sales network throughout Europe, the US and South East Asia.
Fiamm had not replied to BBB’s request for further information on the deal and implications for the firm at the time of going to press.
Earlier this year Hitachi pulled off a deal to take 10% of the Indian SLI market through a strategic tie-up with Ahmedabad-based Alf Technologies— thanks to a free-trade agreement with Thailand.