DAIKIN READIES BILLIONS TO EXPAND IN WARMER WORLD
Daikin Industries Ltd, the world's largest manufacturer of air-conditioners, is ready to tap into its cash pool of 756 billion yen ($6.6 billion) to acquire companies to prepare for a jump in demand as global temperatures rise, while seeking to minimise its carbon impact.
"We need to find ways to invest for the changing environment, finding business opportunities and addressing sustainability concerns, as well as investing in research, people and acquisitions," CEO Masanori Togawa said in an interview, adding that he prefers targets in new markets to bolster sales and service networks.
Daikin has already set aside a mergers and acquisitions war chest of 600 billion yen, but is willing to increase that if necessary, Togawa said. Daikin's operations are on track to benefit from the twin tailwinds of global warming and growing affluence in emerging economies. The International Energy Agency predicts that energy demand for air conditioning will triple by 2050.
The Osaka-based firm is the fifth-best performer in the Nikkei 225 over the past decade with a nine-fold jump in its stock.