Hisense Home Appliances Group Co. plans to acquire troubled Japanese auto air conditioner supplier Sanden Holdings Corp. as the major Chinese home appliances maker expands into the global auto industry.
The deal, priced at 21.4 billion Japanese yen ($200 million), will allow Hisense to control 75 percent of the voting rights in Sanden, Hisense said this week.
Hisense, listed in Shenzhen and Hong Kong, posted a net profit of 499 million yuan ($77 million) on operating revenue of 13.8 billion yuan for the first three quarters of 2020.
Sanden produces air conditioning compressors, heat exchangers and air conditioning systems for vehicles.
The Tokyo-listed company, battered by the coronavirus pandemic, began racking up losses in April 2020.
Sanden incurred a net loss of 17.3 billion Japanese yen on operating revenue of 94.5 billion Japanese yen between April and December last year, according to Hisense.