Japan’s Showa Denko KK said on Thursday it would sell its aluminium business to U.S. investment fund Apollo Global Management as the materials maker steps up efforts to divest assets.

Specifically, Showa Denko said it plans to sell its aluminium rolling business for electronic components as well as the aluminium can business.

The company did not disclose details of the deal, but it is expected to be valued around 50 billion yen ($480.31 million), a source briefed on the matter said.

The divestiture is part of the company’s business portfolio overhaul following the $9.2 billion acquisition last year of Hitachi Chemical, a supplier of materials for semiconductors, displays and lithium-ion batteries.

Global private equity firms such as Apollo, KKR and Carlyle Group have been looking to expand in Japan, taking advantage of large Japanese companies coming under pressure to sell non-core assets and improve returns to shareholders.

Japanese cosmetics firm Shiseido Co Ltd said last week it was in talks to sell its lower-priced skincare and shampoo brands to private equity firm CVC Capital Partners.


Source: Reuters

Reporting by Makiko Yamazaki; Editing by Chris Reese and Christian Schmollinger