A consortium led by global private equity firm Bain Capital will buy all the shares of Hitachi Metals for 817 billion yen (US$3.5 billion), reported Reuters.
For Hitachi, which currently owns 53% of Hitachi Metals, the deal is the latest divestiture in a decade-long business overhaul to pivot the business from electronics hardware to digital services.
Hitachi is expecting to book an extraordinary profit of 328 billion yen in the current financial year, it said in a separate statement.
Hitachi has sought buyers since last year for the business which has posted net losses for two consecutive years in a deteriorating business environment.
In recent years it has also sold chemical unit Hitachi Chemical to Showa Denko and diagnostic imaging business to Fujifilm Holdings.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.