The home appliance manufacturer hitachi has signed a deal to buy LG appliances from the company for $10.3 billion, a person familiar with the matter said.
The acquisition is expected to close in the third quarter of 2021, according to the person, who asked not to be identified discussing confidential transactions.
The person added that the transaction is expected “to add to our portfolio of products and services, which includes a portfolio of home appliances.”
Hitachi will be one of LG’s largest competitors in the segment.
The LG deal was first reported by Bloomberg.
The home appliance maker Hitachi has announced a $10 billion deal to purchase LG appliances, including its latest entry into the segment: the LG-made Hitachi Smart-Home.
Hitachi is also planning to expand its U.S. operations with an acquisition of the company’s Appliance Group unit, according the person.
The Hitachi sale comes as LG is ramping up to launch the LG Home App, a free app that is intended to streamline the user experience for consumers and provide a unified user interface for the home, according a blog post on the company website.
The app, which launched last month, has been downloaded more than 9 million times.
In March, the company reported a profit of $1.8 billion for the third-quarter, up from $1 billion a year earlier.
The company posted revenue of $12.2 billion for that quarter.
The growth came on top of an increase of $4.3 million in profit from the prior year, and the company said that its total sales of $11.4 billion were the third highest in the world.