Toshiba plans to split into three companies
The Japanese company has confirmed previous reports and stated its intention to separate into three standalone companies.
The company will create two core businesses, its infrastructure business as well as its device and storage business. The infrastructure business, which will operate under the name Infrastructure Service Co. will consist of Toshiba’s Energy Systems & Solutions, Infrastructure Systems & Solutions, Building Solutions, Digital Solutions and Battery businesses. The new device business, aptly named Device Co., is made p by the company's Electronic Devices & Storage Solutions business. Toshiba says in a press release that this separation will allow each business to increase its focus and facilitate more agile decision-making and leaner cost structures. The company also says that after spinning off the two companies, Toshiba will continue to hold its 40.6% stake in memory chipmaker Kioxia. “We are convinced that the business separation is attractive and compelling: it will unlock immense value by removing complexity, it enables the businesses to have much more focused management, facilitating agile decision making, and the separation naturally enhances choices for shareholders. Our Board and management team firmly believe that this strategic reorganisation is the right step for sustainable profitable growth of each business and the best path to create additional value for our stakeholders,” says Satoshi Tsunakawa, Interim Chair, President and CEO of Toshiba, in the press releaes.