Toshiba, IHI in talks over nuclear plant tie-up: Report
Japan's Toshiba Corp and heavy machinery manufacturer IHI Corp are in talks over a possible business tie-up in energy systems.
By Agencies |
TOKYO: Japan's Toshiba Corp and heavy machinery manufacturer IHI Corp are in talks over a possible business tie-up in energy systems, including nuclear power plant construction, a report said on Friday.
IHI may spin off its energy plant business into a new company that would then be partly owned by Toshiba, the Yomiuri newspaper reported, citing unnamed company sources.
The two companies aim to challenge industry leader Mitsubishi Heavy Industries, it said.
Toshiba, however, denied the report. "It is not true that Toshiba is in such negotiations with IHI in an attempt to integrate the energy businesses," it said.
Toshiba in 2006 bought US nuclear power plant maker Westinghouse in a multibillion-dollar deal, expecting strong growth in atomic power due to concerns over high oil prices.
Energy is one of Toshiba's core businesses along with semiconductors. Last week the company exited a DVD format war with rival Sony, saying it would focus on more profitable business areas.
IHI Corp meanwhile is selling its loss-making cement plant business to industry peer Kawasaki Heavy Industries Ltd after a severe profit warning last year due to problems at plant projects.
IHI may spin off its energy plant business into a new company that would then be partly owned by Toshiba, the Yomiuri newspaper reported, citing unnamed company sources.
The two companies aim to challenge industry leader Mitsubishi Heavy Industries, it said.
Toshiba, however, denied the report. "It is not true that Toshiba is in such negotiations with IHI in an attempt to integrate the energy businesses," it said.
Toshiba in 2006 bought US nuclear power plant maker Westinghouse in a multibillion-dollar deal, expecting strong growth in atomic power due to concerns over high oil prices.
Energy is one of Toshiba's core businesses along with semiconductors. Last week the company exited a DVD format war with rival Sony, saying it would focus on more profitable business areas.
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IHI Corp meanwhile is selling its loss-making cement plant business to industry peer Kawasaki Heavy Industries Ltd after a severe profit warning last year due to problems at plant projects.
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