Heavy Equipment Industry News Updates

Tokyo - Japan's crisis-stricken industries are signs of a breakthrough
major merger.
The largest conglomerate in the country, Hitachi, and the leading
manufacturer of heavy equipment, Mitsubishi Heavy Industries
considering sources said the merger of their core business. So is the
creation of a global heavyweight in competition with General Electric
or Siemens before, with annual sales of $ 150 billion in 2013.
The two companies have entered into discussions about the combination
of critical infrastructure and information technology businesses, said
three people familiar with the negotiations said Thursday. A merger of
two of the oldest groups in the country could initiate much needed
consolidation in Japan's industry. So far, Japanese companies have
shied away before.
"This is a historic event, if it should prove true," said analyst
Fujido Ando of Chibagin Asset Management. "If they enforce this and
form a new group of several other companies that deserves high
praise." One such step has so far been extremely difficult to
implement than in Japan. A merger could help the economy of the
country, however, fund managers said Kiyoshi Noda of MU Investments.
"You would have to compete not against each other when they are
looking for international infrastructure projects. This increases
their chances."

No decisions have yet been passed, it said in the circles. Many
fundamental questions are still open "? Who takes the lead where what
happens to businesses that overlap What happens to the alliances of
the two companies," one of the enumerated persons familiar with the
plans. Finally, the sources said the talks should have even been on
the brink, after the economy had newspaper "Nikkei" reported it. An
announcement for the Thursday release was withdrawn.
SECOND LARGEST INFRASTRUCTURE GROUP BY GE
Japanese industrial groups suffer from the weakness of the global
economy and a strong yen, which is extremely expensive their products
abroad. The country braces itself but with power against the weak
economy caused by the earthquake and tsunami in March this year, was
reinforced. On Thursday, the Fed eased further in the country on their
already lax monetary policy and intervened in the foreign exchange
market against the strong yen.
To remain competitive and cost savings, mergers are clearly brought to
the fore. Both Hitachi, whose product range as well as rice cookers,
televisions, excavators, mowers and computer chips includes, as well
as Mitsubishi Heavy have for years under their high cost. Hitachi
succeeded in the last financial year (ending March) the first time in
five years, to the black. In the last ten years the company has lost $
14.3 billion. For comparison, the world's largest conglomerate General
Electric earned during the same period of $ 160 billion. Mitsubishi
Heavy quarrels with his ship and aircraft sectors. Total operating
profit of Boeing's partner, according to data from Thursday in the
first quarter fell within a year by one percent to 38.7 billion yen.
Together, Hitachi and Mitsubishi Heavy came on revenues of $ 150
billion and would thus according to GE's second largest infrastructure
companies in the world that has next to nuclear plants and
conventional power plants, water treatment, renewable energy and rail
cars on offer. By market value, the new group would be in relation to
other conglomerates such as GE, Siemens and ABB but still small.
Hitachi comes to 27 billion dollars and Mitsubishi Heavy to $ 16
billion. GE has a market value of 182 billion dollars and Siemens of
nearly 110 billion dollars.