Hitachi Ltd. is in talks with Showa Denko K.K. to sell its chemical unit Hitachi Chemical Co., sources familiar with the matter said Tuesday.
Hitachi is looking to offload its chemical unit so it can focus resources on what it believes to be growing sectors such as information technology and social infrastructure, the sources said.
If a deal is reached, Showa Denko is expected to launch a tender offer in mid-December to make Hitachi Chemical a wholly owned subsidiary for around ¥900 billion ($8.26 billion), the sources said.