Daikin Aquires Rivals Goodman

The world’s biggest air conditioning company Daikin announced last month that they will be acquiring their rivals Goodman Global as they look to expand into the North American Market. The deal is costs around $3.7 billion. This means they will add a “strong fourth pillar” to their operations which are currently in Japan, China and Europe.

Goodman focuses on North America because is the world’s largest market for heating, ventilation and air conditioning.

The chief executive at Daikin, Noriyuki Inoue has said, “Most systems in this market are ducted-style, a segment where we have little presence.

“Goodman and Daikin can enjoy a complementary relationship by having more channels in the market to offer Goodman’s market-leading ducted products and Daikin’s existing products.”

Although this seems like a great move for the company, investors are less than impressed. This is because their shares have fallen by 3.53 per cent and the deal is going to change the size of Daikins balance sheet greatly. This is because it is being financed by debt and cash on hand. If regulators approve the deal then it is set to be complete by the end of the year.