Vaio, Toshiba and Fujitsu are preparing to merge "with a minimum degree of cannibalization"
Vaio is in talks to merge with Toshiba and Fujitsu . The deal is profitable for companies because in the aftermath of the merger a large manufacturer of computer equipment will emerge on the world stage, becoming the leader in the Japanese market and an influential player in the global PC market.
In addition, market development with new product categories like the recently released Vaio Windows 10-based smartphone and the projected home robot is not excluded.
In 2014, Vaio stood out from Sony . Now Vaio is under the control of the state-owned Japan Industrial Partners fund . The fund specializes in the repurchase and restructuring of troubled national high-tech assets.
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The parties must reach an agreement on the merger by the end of March. Vaio’s share in the combined company will be the largest, Bloomberg reports citing Hidemi Mowe, general director of Japan Industrial Partners.
“The PC market is shrinking, and it is becoming more profitable to unite to save on research, production and marketing,” says Mowe. “We can merge with a minimal degree of business cannibalization.”
In addition, the position of manufacturers of personal computers is complicated by the growing popularity of new types of devices - smartphones and tablets.
Against the background of the news about the upcoming merger Toshiba quotes soared by 8.2% - this is the strongest growth in the last five years. Fujitsu shares rose 2.5%, Vaio shares are not traded on the stock exchange.
So far, Vaio, Toshiba and Fujitsu are falling even in the Japanese PC market. After the merger, the new company would be able to control about a third of this market and thus compete with the joint venture NEC and the Chinese Lenovo .
According to IDC estimates, in the third quarter of last year the share of NEC Lenovo was 29% here, Fujitsu accounted for 17%, Toshiba accounted for 12%.
In early February, Megamind wrote that Toshiba expects the largest losses in 2016 for all 140 years of its existence.
According to the company's forecast, its net loss for the fiscal year ending on March 31 will be 710 billion yen ($ 6 billion) against the expected 550 billion yen in December (almost $ 4.6 billion).
One of the reasons for such a “bold” forecast is the write-off of the cost of several units.
Toshiba in the summer of 2015 announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits.
Fujitsu has the peak of PC deliveries in 2007, then this company began to reorient the business from equipment manufacturing to selling information services.
Meanwhile, Vaio, despite the unfavorable situation, can complete the current quarter with a profit. In the next fiscal year, according to Moue, the company will also be profitable.
In the past, Mowe was involved in banking at Mizuho Securities . When the fund invested in Vaio in 2014, it was skeptical of the market. “I, as the head of a private equity fund, should try to go against the current. When I made decisions, at first I never heard that this was a good decision. But, when people consider something unpromising, I understand that I am on the right track, ”Vedomosti quoted the words of Mue with reference to Bloomberg.
In addition, market development with new product categories like the recently released Vaio Windows 10-based smartphone and the projected home robot is not excluded.
In 2014, Vaio stood out from Sony . Now Vaio is under the control of the state-owned Japan Industrial Partners fund . The fund specializes in the repurchase and restructuring of troubled national high-tech assets.
')
The parties must reach an agreement on the merger by the end of March. Vaio’s share in the combined company will be the largest, Bloomberg reports citing Hidemi Mowe, general director of Japan Industrial Partners.
“The PC market is shrinking, and it is becoming more profitable to unite to save on research, production and marketing,” says Mowe. “We can merge with a minimal degree of business cannibalization.”
In addition, the position of manufacturers of personal computers is complicated by the growing popularity of new types of devices - smartphones and tablets.
Against the background of the news about the upcoming merger Toshiba quotes soared by 8.2% - this is the strongest growth in the last five years. Fujitsu shares rose 2.5%, Vaio shares are not traded on the stock exchange.
So far, Vaio, Toshiba and Fujitsu are falling even in the Japanese PC market. After the merger, the new company would be able to control about a third of this market and thus compete with the joint venture NEC and the Chinese Lenovo .
According to IDC estimates, in the third quarter of last year the share of NEC Lenovo was 29% here, Fujitsu accounted for 17%, Toshiba accounted for 12%.
In early February, Megamind wrote that Toshiba expects the largest losses in 2016 for all 140 years of its existence.
According to the company's forecast, its net loss for the fiscal year ending on March 31 will be 710 billion yen ($ 6 billion) against the expected 550 billion yen in December (almost $ 4.6 billion).
One of the reasons for such a “bold” forecast is the write-off of the cost of several units.
Toshiba in the summer of 2015 announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits.
Fujitsu has the peak of PC deliveries in 2007, then this company began to reorient the business from equipment manufacturing to selling information services.
Meanwhile, Vaio, despite the unfavorable situation, can complete the current quarter with a profit. In the next fiscal year, according to Moue, the company will also be profitable.
In the past, Mowe was involved in banking at Mizuho Securities . When the fund invested in Vaio in 2014, it was skeptical of the market. “I, as the head of a private equity fund, should try to go against the current. When I made decisions, at first I never heard that this was a good decision. But, when people consider something unpromising, I understand that I am on the right track, ”Vedomosti quoted the words of Mue with reference to Bloomberg.
Source: https://habr.com/ru/post/298722/
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