Hewlett-Packard Co is to take full control of its Japanese joint venture following an agreement with local partner Yokogawa Electric to buy its 25% stake for 60 billion yen ($488m). Yokogawa president Isao Uchida said the company had decided to sell its stake because it found itself in increasing competition with HP Japan. Yokogawa is the world’s second largest maker of industrial instruments such as controllers for chemical and power plants and its products compete with HP’s precision instruments.
HP chief executive Lew Platt said that although the companies are rivals in some areas they will continue to supply each other with various products. Platt also said the timing of the purchase is related to the restructuring of HP, which is scheduled to split into two businesses, one handling IT products and the other instruments, in November.
