Samsung may buy out Hitachi's home appliance business in Japan

Samsung Electronics may end up buying out one of its home appliance competitors in Japan, according to recent reports citing a deal that could be worth nearly $680 million. Japanese brand Hitachi is reportedly shifting its business priorities with a greater focus on the digital segment. The conglomerate may be planning to sell its domestic home appliance subsidiary as a result.

Although neither Hitachi nor Samsung commented on the matter, Hitachi may have already contacted several potential buyers. Samsung was among them, according to reports from the Korean media citing Nikkei.

Hitachi sells home appliances, including washing machines and refrigerators, in Japan. However, these white goods don't generate post-sale digital revenues, which doesn't gel with Hitachi new aim to focus more on a post-sale revenue business model.

In addition, Japanese home electronics manufacturers have been struggling in the domestic market since the 2010s, as competitors from other Asian countries became increasingly dominant.

Samsung is already an established global home appliance manufacturer. Buying Hitachi could give the company a stronger foothold in Japan.

Assuming that the deal goes through, reports say it could be worth around 100 billion yen ($678 million). Exactly what would happen to the Hitachi home appliance brand in Japan if Samsung were to buy it is unclear.

However, Samsung is no stranger to playing the long game. After acquiring Harman International for $8 billion in 2017, the latter brand's profitability improved significantly last year. Harman's profits doubled Samsung's TV and home appliance divisions in Q4 2024.