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Siemens, Fujitsu link PC arms
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June 17, 1999: 8:42 a.m. ET
German and Japanese groups to merge PC operations in Europe
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LONDON (CNNfn) - German electronics giant Siemens and Japan's Fujitsu confirmed plans Thursday to combine their personal computer operations in Europe.
The 50:50 joint venture, to be called Fujitsu Siemens Computers, will have pro forma sales of about $6.3 billion and rank number two in the European behind Compaq (CPQ).
The combined operation has a market share of more than 12 percent and is expected to build PCs at two German plants and market the products under the Siemens brand.
Siemens shares added 2.19 percent at 72.25 euros in early Frankfurt trading Thursday after making strong gains Wednesday on speculation of a deal. Fujitsu closed up more than 5 percent at 2,290 yen in Tokyo.
Munich-based Siemens has been striving to boost its scale and competitiveness in the fiercely-contested PC market. A bid to sell its PC manufacturing business to Taiwan's Acer broke down last October after disagreements over pricing.
"We know Siemens has an underweight (PC) business on a global scale," said one London-based analyst who spoke on condition of anonymity. "In this business you need to be big.".
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Siemens
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