(Bloomberg) -- Showa Denko K.K., Japan’s No. 3 diversified chemicals supplier, agreed to pay as much as 964 billion yen ($8.8 billion) in a takeover bid for Hitachi Chemical Co., a deal that bolster its car battery and high-function materials business.

Once completed, an acquisition of that scale would be the largest yet for Showa Denko, and would boost the company’s revenue from advanced automotive batteries and related materials, segments that are growing fast as carmakers race to make more electric-powered vehicles. Hitachi has been shedding non-core businesses to re-focus on manufacturing equipment and data services that benefit from internet-of-things technologies.

As Hitachi shifts its focus toward power grids and data management, it is on track to buy ABB Ltd.’s power grid division for about $6.4 billion after reaching an agreement a year ago in its biggest-ever deal. The manufacturer has also said it’s considering options for Hitachi High-Technologies Corp., including making the electronics, medical and chip-making equipment company a wholly owned subsidiary.

--With assistance from Masumi Suga.

To contact the reporter on this story: Takako Taniguchi in Tokyo at ttaniguchi4@bloomberg.net

To contact the editors responsible for this story: Emma O'Brien at eobrien6@bloomberg.net, Dave McCombs

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