Japanese-based air conditioning and water heating company, Paloma Rheem Holdings, has revealed its intention to submit a tender offer to acquire outstanding common shares of Fujitsu, to make the brand a wholly-owned subsidiary.

In a Fujitsu General board of directors meeting held on Monday 6 January 2025, members conveyed support for the tender offer, suggesting that shareholders submit their shares in the offer to allow Fujitsu to be absorbed by Paloma Rheem Holdings. The tender offer is expected to commence in July 2025, subject to conditions including regulatory approvals from domestic and international competition authorities.

Paloma Rheem Group (PRG) is one of the world’s leading air conditioning and water heating companies, operating in 85 countries with 35 production plants and 16 research and development sites. Rheem was acquired in 1988, and predominantly operates in North and South America, Europe and Australia.

Global marketplace competition continues to increase in the air conditioner space as international decarbonisation trends call for new innovations and products. As such, PRG believes it is vital to construct a robust business model to allow for sustainable and quick growth, beginning with the acquisition of Fujitsu General.

Fujitsu General Australia and New Zealand managing director, Philip Perham said, “Fujitsu General already has a cooperative relationship with Paloma Rheem Holdings. Through this proposed acquisition, both companies will be able to strengthen their competitiveness in the global market and achieve sustainable business growth into the future. Fujitsu General remains committed to reinforcing collaborative partnerships with all its valued partners and will continue to take all possible measures to provide a stable supply of products and services, as well as to engage in business activities with higher added value than ever before.

“For retail partners and end customers, it will be business as usual. We expect that the future combined businesses will help us to expand competitive solutions for the air conditioning sector while at the same time improving customer responsiveness through an integrated sales and service network.”