Johnson Controls and Hitachi and Hitachi Appliances have entered into a definitive agreement to form a global joint venture for heating, air conditioning, ventilation and refrigeration (HCAV).
As per the agreement, Johnson Controls will obtain a 60 per cent ownership in Hitachi Appliances. The deal excludes sales and service operations in Japan.
Hitachi Appliances will continue to provide Hitachi branded HVAC products in the Japanese market after this transaction, the company said in a statement.
Commenting on the joint venture, Johnson Controls chairman and chief executive officer Alex Molinaroli said: "The joint venture will propel us forward with superior products, enabling Johnson Controls to deliver the most diverse technology portfolio in the industry to meet customer demands across the changing global marketplace."
The agreement was signed at the World Economic Forum in Davos.
The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
