Japanese electronics group Fujitsu is planning to take complete ownership of Fujitsu Siemens Computers, its 50:50 joint venture with German industrial group, Siemens, formed in 1999 between the two firms.

A majority of the Fujitsu Siemens' 10,500 employees are Germans, 6000 of whom are employed in factories in Paderborn, Soemmerda, Munich and Augsburg.

According to German media reports, Siemens intends to divest its 50-per cent stake in the company at approximately between €400-€500 million, although for Fujitsu the price may end up being higher on account of the pension obligations.

Fujitsu plans to take Siemens' stake into its own subsidiary.

At a press conference on July 8, 2008 in Munich, Siemens chief executive Peter Loescher had said, the Siemens would cut around 12,600 jobs worldwide, including 3,500 in Germany (See: Siemens to axe 4 per cent of global workforce)   and had also hinted in August of the possible sale of its half stake in the Fujitsu Siemens joint venture (See: Siemens plans to pull out of joint venture with Fujitsu) 

From Siemens point of view the FSC stake sale will not only help it cut jobs but also help in reducing expenses. Siemens plans to channelise the proceeds fom the sale on its energy, industry and health-care businesses.

Fujitsu posted a revenue of €6.6 billion and profits before tax of €105 million in the last financial year. The deal, if it goes through, will cut costs for both companies.

It is also speculated that Fijitsu is expected to focus on server business which accounts for about 80 per cent of the sales following the acquisition and may sell the PC division that makes personal computers and laptops. The possible buyer for PC and laptop business may be Chinese computer manufacturer Lenovo.

Fujitsu Siemens was formed nine years after the German industrial giant acquired Nixdorf in 1990 and formed the JV with Fujitsu in 1999 to amalgamate the company's personal computer and server businesses in Europe.

Fujitsu Siemens Computers has a presence in all key markets across Europe, the Middle East and Africa, with infrastructure services extending coverage approximately 170 countries worldwide.