August 31, 2016 - Fuji Electric Co., Ltd. (TSE:6504) ("FE"), headquartered in Tokyo, Japan, led by President Michihiro Kitazawa, today announced that it has dissolved the joint venture with General Electric ("GE") of the U.S. in the electric meter business. FE has also acquired from GE Energy Japan, Ltd. ("GEEJ"), a GE's subsidiary in Japan, all of the shares in GE Fuji Meter Co., Ltd. ("GFM"), the joint venture company. This has made GFM a wholly-owned subsidiary of FE.
1．Background to Dissolution of Joint Venture and Acquisition of Shares in Joint Venture Company
GFM was established through a joint capital investment of FE and GEEJ in February 2011 for the purpose of designing, manufacturing and marketing electric meters for the Japanese market. It has developed its business by properly seizing the market opportunities arising from the dissemination of smart meters in Japan.
GE sold off the global electric meter business in December 2015 as part of its business portfolio strategy.
In response, FE and GEEJ came to an agreement on the acquisition by FE of the GEEJ-owned shares in GFM and termination of the joint venture agreement.
2．Outline of Joint Venture Company
||After dissolution of joint venture
|(1) Company name
||GE Fuji Meter Co., Ltd.
||Fuji Electric Meter Co., Ltd.
* Company name to change in March 2017 (scheduled)
|(2) Head office address
||1-11-2 Osaki, Shinagawa-ku, Tokyo
||Same as on the left
|(3) Name of representative
||Micho Shinozaki, Chairman and representative director, CEO
|(4) Description of business activities
||Electrical equipment manufacturing
||350 million yen
|(6) Investment ratio
||Fuji Electric: 5,001 shares (50.01%)
GEEJ: 4,999 shares (49.99%)
|Fuji Electric: 10,000 shares
3．Schedule for Dissolution of Joint Venture and Acquisition of Shares in Joint Venture Company
Date of dissolution of joint venture in electric meter business with GE and completion of share acquisition: August 31, 2016