Toshiba like General Electric, in 2023 is divided into three companies: focus on infrastructures, devices and semiconductors
Toshiba wants to split into three companies. The Japanese giant is preparing a plan to split into three independent companies, separating its two main activities: the energy and infrastructure business from that of electronic devices and data storage.
From what is learned, one of the three units will therefore focus on infrastructure, another on device e i semiconductors, the third will keep the name Toshiba and the 40.6% stake in chipmaker Kioxia. The share of the Japanese company, listed in Tokyo, closed the last trading session with a loss of 1.9%.
The move would come after pressure from investors who have long been asking for a more targeted structure. To prepare the plan, Toshiba started a strategic review lasted five months which, at least in the results, resembles the maxi rearrangement in the house General Electric, which on Monday announced its intention to split its businesses into three listed companies, starting in 2023, which will focus on health care, energy e aviation.
The decision may not fully satisfy foreign shareholders, some of whom have requested the sale of Toshiba to one private equity firm which would probably be more aggressive in dividing Japanese society.
Compared to the three focused parts of General Electric (energy systems, medical devices and aircraft engines), the three proposed parts of Toshiba they will each consist of several activities that have no obvious synergies. The infrastructure unit will include products and services such as water treatment, trains, power turbines and maintenance of nuclear plants.