Germany’s Siemens AG and its 40% owned subsidiary GPT Ltd are merging their British PABX distribution operations. GPT Sales and Service and Siemens Communications Systems are being merged to form GPT Communications Systems. The new company will have a turnover of UKP170m and employ 2,000 people. Siemens, which will take a 50% stake in the joint venture, says GPT Communications will distribute both Siemens’ Hicom PABXs and its GPT rival, the ISDX. Siemens took a 40% stake in GPT following the joint takeover of Plessey by Siemens while GEC retains a 60% stake in the company. GEC is taking a 50% stake in the new company, but there has been speculation that Siemens is attempting to take control of GPT, and eat up a greater share of the telecommunications market in PABXs and public switching systems. In November GPT announced the merger of its US switching division with Siemens’ American telecommunications arm and the two announced in April that their respective switching systems, EWSD and System X are to be gradually brought together. Siemens denies that the new joint venture is the next step in it taking over GPT. The two companies will appoint an equal number of directors to the board while Bryan Mead of GPT will become chairman and Peter Zaboji of Siemens will be managing director. The venture is subject to the approval of the Office of Fair Trading. Lord Weinstock of GEC has previously acknowledged that GEC and Siemens have had to move carefully in their joint ventures to avoid arousing any suspicions that they are building a monoply.
