Raft of divestments signals failure within Japan electronics sector

Tokyo

HOT on the heels of a bid by Taiwan's Hon Hai company to acquire Japanese electronic goods manufacturer Sharp Corporation, another famous Japanese name, Toshiba, has agreed to sell a major part of its "white goods" business to Chinese home appliance maker Midea Group.

The deal, confirmed by Toshiba on Thursday and expected to be sealed by month's end, marks yet another foreign acquisition of assets in the Japanese consumer electronics industry.

While these deals by Taiwan and China-based firms may signal that Japan is becoming a more open economy and boost Prime Minister Shinzo Abe's aim of attracting more foreign investment, they also signal failure within…