Hitachi, Ltd. has pursued major acquisitions in the energy, IT and railway sectors, emphasizing its aim of restructuring its own business portfolio. At the same time, overseas acquisitions have been criticized for challenges including slow decision-making and organizational silos, raising questions about their true benefits.
Hitachi, Ltd. has made a series of major acquisitions, led by Hitachi Energy in the energy sector, as well as in IT, railways and other fields. These M&A deals are portrayed as part of an effort to rebuild the company’s business foundation, learn from the acquired businesses and pursue growth with ambition.
The difficulties of acquiring overseas companies have been highlighted across Japanese industry, and there have reportedly been cases in the pharmaceuticals and materials sectors that resulted in substantial impairment charges. In Hitachi’s case, some have pointed out that the company is at times dependent on the earnings generated by its overseas acquisitions.