|
|
|
|
|
The eBearing News
February 9, 2005
Koyo Seiko Merging With Toyoda Machine
copyright © 2005 eBearing Inc.
Koyo Seiko Co. Ltd. (Japan) and Toyoda Machine Works Ltd. (Japan) announced they have reached
agreement to merge, effective April 1, 2006.
Although billed as a merger of equals, Koyo is older (founded in 1921) and significantly larger
than Toyoda (founded in 1941). The name of the single entity will be Koyo Seiko until the
merger is fully completed. Then, the company will be given a new name, as yet undetermined.
The new organization will have main offices in Osaka and Nagoya.
All Koyo and Toyoda brand names will remain unchanged in their various marketplaces under the
new organization. All operations of both companies are tentatively slated continue as-is, with
no jobs lost.
Koyo, depending on the method used, is usually noted as the world's sixth largest bearing
manufacturer. The company not only produces bearings, but steering systems and other
automotive-related products stemming from the bearing business.
Toyoda was established as a machine tool manufacturer and has remained primarily in that business,
with some operations also focusing on automotive components and electronic controls.
The two companies first linked resources in 2002 when they formed a joint venture to manufacture electric
power steering and other advanced design products to automakers. The venture, FAVESS, led to further
collaboration and eventually the idea to merge their entire business operations worldwide.
• 2002 article: Koyo, Toyota, Denso, Toyoda
Establish Electric Power Steering Joint Venture
Koyo Seiko will issue 0.76 shares of common stock for each share of Toyoda Machine common
stock, pending agreement on that ratio by independent auditors. The initial exchange values
Toyoda Machine at approximately USD $1.4 billion.
The companies issued a joint statement, saying in part:
Based particularly on the experience of working together successfully at FAVESS, the two
companies have judged that through an overall merger of their wide range of management resources,
even greater steering business results can be obtained and at the same time a synergistic effect
realized in bearing, machine tool and drive train operations.
In addition, because the company to be created through this overall merger will be primarily an
automotive parts maker while possessing tremendous manufacturing strength as a result of its machine
tool operations, the two companies have concluded that it will be able to win the trust and high
expectations of customers, compete effectively in today's harsh business environment, gain the
trust of society, and capitalize on new business opportunities.
Both companies elaborated further, essentially stating their forecasts showed they are gradually
losing ground in the increasingly competitive market for automotive components. In order
to survive, they needed to partner with another company and develop deeper
resources than each could develop on their own.
Sales for the merged company are expected to top $9.7 billion worldwide; it is also
expected to continue to rely heavily on its close supplier relationship with Toyota Motor Company.
|
|
|
printer-friendly version
|
|
- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
|
|
eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
|
|
|
|
|
| |
eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
|
|
|
