Hitachi Prepares for Consolidation
Hitachi Ltd. Is expected to roll up five of its affiliated companies, including Hitachi Maxell Ltd., in a new drive to maximize savings and create internal synergies. The parent company has been seeking to consolidate operations after posting a 787.3 billion yen loss in the last fiscal year. If the roll-up moves ahead on schedule, the consolidation could be completed by the end of August.Earlier this year, Hitachi absorbed four other subsidiaries, including Hitachi Mobile Co. as part of a plan to bolster what Hitachi calls its "social-innovation businesses," such as consumer electronics.
Reports of the consolidation plan in Japanese media on Monday triggered a 16% jump in Hitachi's stock, the biggest gain since early 2002. Shares of Hitachi and the five subsidiaries were then temporarily suspended from trading.
Hitachi's assimilation of companies into one entity is not expected to affect operations in global CE distribution immediately. Nonetheless, the move paves the way for a more competitive venture amidst other upheavals and rearrangement of the CE manufacturing landscape.