By Takashi Mochizuki
TOKYO—Japanese conglomerate Toshiba Corp. said Thursday it had reached agreements to sell its medical and consumer-electronics units, part of efforts to raise cash and reduce its bloated business portfolio.
Toshiba /zigman2/quotes/204149068/delayed TOSYY -1.83% /zigman2/quotes/205628942/delayed JP:6502 -2.19% , which makes a wide variety of products including trouser presses and nuclear power plants, said it had reached an agreement to sell Toshiba Medical Systems Corp. to Canon Inc. /zigman2/quotes/210242912/composite CAJ -3.66% /zigman2/quotes/207639533/delayed JP:7751 -3.90% in a deal valued at ¥688 billion ($6.2 billion).
Separately, Toshiba said it struck a preliminary deal to sell a controlling stake in its consumer-electronics arm, Toshiba Lifestyle Products and Services Corp., to Midea Group Co. /zigman2/quotes/207665926/delayed CN:000333 +1.50% , a Chinese maker of low-cost appliances. The transaction is expected to be completed by the end of the month but detailed terms haven’t been set, Toshiba said.
Toshiba expects to record a net loss of ¥710 billion in the fiscal year ending this month, the biggest in its 140-year history. Last year it was hit by one of Japan’s worst-ever corporate accounting scandals. The revelation of years of overstating financial results culminated in the ouster of senior executives.
Midea plans to leverage Toshiba’s consumer electronics brand to raise its global presence. It makes affordable home appliances, such as refrigerators, rice cookers and robot vacuum cleaners, but its major markets are developing countries and it remains unknown in most advanced nations.