Fujitsu to buy Siemens AG’s 50% stake in their PC Joint Venture for $ 567 million
Japanese electronics conglomerate Fujitsu Ltd has informed that it will acquire Industrial conglomerate Siemens AG's 50 percent stake in their PC joint venture for 450 million euros ($567 million), aiming to boost its presence in Europe.
Fujitsu Siemens Computers (FSC), which makes personal computers and laptops, was established in October 1999 as a 50-50 joint venture based in Maarssen, Netherlands. The venture employs more than 10,000 workers worldwide, among them 6,200 in Germany with plants in Augsburg, Munich, Paderborn and Soemmerda.
The firm posted sales of 6.6 billion euros in 2007 but a pretax profit of just 105 million Euro. Post acquisition, Fujitsu-Siemens PC Joint-venture would become a wholly owned Fujitsu company.
According to sources, where one side the acquisition would help Fujitsu to expand global sales of information technology products and related services across the region.
While on the other side it would also allow Siemens, which has been spinning off non-core business, to focus more resources on its power, energy and health services at a time when the global financial crisis could crimp demand for computers.
The companies plan to complete the deal April 1, 2009, upon government approval.
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