On stock markets around the world, there are expected and normal returns for shareholders. One significant player is hedge funds who search for value, and have money to spend, and the ability to push the shareholding system. The hedge funds have made money from America tech companies and they search for other tech companies in the world, some have focused on Japanese companies.
In an article by Makiko Yamazaki of Reuters, Toshiba announced it will be breaking up into 2 companies as opposed to 3 companies. The previous plans called for one company to focus on devices, one for energy and infrastructure and the third for its Kioxia flash memory chip assets.
Toshiba says they will only spin off the devices business by March 2024.
One has to remember in Japan, the Japanese culture encouraged conglomerates and they are supported by the Trade Ministry. The conglomerates are interconnected and as they became larger, the government issued statements such as the company possesses important technology including nuclear power and semi-conductors that are related to national security and it is important that the businesses are maintained and developed.
Linking to dividend paying stocks, companies around the world do the same thing, however depending on where the company is headquartered, the government or one of its agencies has a say in the operations or changes in the operations. Governments around the world use the phrase economic development, and the phrase means different things to different governments. While it is important to look around the world, remember there are subtle differences which can make change more difficult. Understanding the subtle differences allows you to invest around the world.
There are more questions than answers, till the next time – to raising questions.