Toshiba Buys Westinghouse
Toshiba, the world's ninth largest manufacturer of electric and electronic equipment, won a tough battle to purchase Westinghouse Electric Company this week. It submitted the highest bid of $5 billion.
Westinghouse, a nuclear plant builder based in Pittsburgh, Pennsylvania, is part of British Nuclear Fuels PLC, which is owned by the British government.
General Electric and Mitsubishi Heavy Industries were also among the bidders for Westinghouse.
Toshiba receives more than a quarter of its sales from nuclear power equipment. With its purchase of Westinghouse, the company hopes to cash in on China's strong demand for nuclear power. China could spend more than $54 billion on new reactors over the next decade.
Mitsubishi Reports Record Car Sales
Mitsubishi Motors sold a record number of cars in Europe in 2005. Sales increased by nearly 18 percent. Mitsubishi says its new models are responsible for the gain. Mitsubishi plans to start exporting its new "I" mini-vehicle to Britain by the end of the year.
Mitsubishi Motors President Osamu Masuko talked to reporters about the "I" car. "We are targeting sales of 6,000 cars per month," he said. "This model will innovate the small car."
Sanyo Turns Over Management Control
Sanyo Electric Company, Japan's third-largest producer of consumer electronics, is giving management control to U.S. investment bank Goldman Sachs, and Japan's Daiwa Securities and Sumitomo Mitsui Banking. Sanyo plans to raise $2.6 billion from the banks to help cover restructuring costs and record losses.
Sanyo's executive director Satoshi Iue resigned to take responsibility for its poor performance. Sanyo will create a new nine-member board including five directors from the three financial banks, giving them a majority.
Sanyo predicts a loss this year of $2 billion due to the earthquake damage done to its major semiconductor factory in 2004 and poor sales of its home appliances and digital cameras.
Japan to Finance Jakarta Rapid Transit
The Japanese government plans to finance a rapid transport project in Jakarta to help ease the heavy traffic in the Indonesian capital. It will cost about $700 million.
Construction on the project, which includes a subway system, will begin in 2008 and should finish in 2013.