Originally posted by jeffkrol Technically it's "
Pentax became a 90.58%-owned subsidiary of HOYA." And as to division seperation I believe they are still doing this as a "failsafe"........
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The major conclusions in this announcement are that the Pentax name will remain, that Pentax's optical business will merge with Hoya's but that Pentax's current imaging systems division (that which is responsible for digital cameras) will continue."
Wouldn't make any sense not to make "profit" off selling blanks to the optical division. Just think about what would happen if a "product lens" tanked...... Pentax "imaging system" will reflect a loss but the "parent" Hoya would look good. Even Sony sells their sensors to Sony camera....
Got to admit I'm guessing on Hoya/Pentax but it seems logical...
Subsidiary - Wikipedia, the free encyclopedia
Subsidiaries are separate, distinct legal entities for the purposes of taxation and regulation. For this reason, they differ from divisions, which are businesses fully integrated within the main company, and not legally or otherwise distinct from it. Well, anything can be viewed as logical depending upon your point of view...
Given that Hoya owns the Hoya lens blank business and now the Pentax lens business, it really does not matter where you show the profits but tax law causes distortions in business decision making and there are PR (shareholders and the customer base) and market issues to consider as well. On the side of PR one would think that they will want to show that the new acquisition was a smart move and that they can quickly boost profits on those products they invested so much money in.
From a market perspective, if you want to take market share and grow the Pentax business (which includes many more lenses and lens assemblies than those used with our cameras) you would want to have better margins on those products so you could undersell the competition or at least compete aggressively at better margins and profits. If this sort of strategy was not what Hoya had in mind for both the Pentax medical and camera business, what was the point of the acquisition?
We also have no idea which parts of the Pentax business have already, or will soon end up in which parts of the Hoya business both operationally and legally. It could well be that the Pentax optical glass operations (including our camera lenses and all the other lenses Pentax supplies here and there) could end up as a part of the Hoya optical glass operations, functionally and legally. There is nothing magic about the Pentax name that automatically means that whatever was under the old Pentax name will remain so operationally or legally. Given the closed-mouth nature of Hoya so far, we may never know.
Frankly, without wading through (boring) legal documents and filings, some which might not even be available or complete as of this time, I guess we really do not know how the legal structure will end up either. I also cannot read Japanese
Obviously, this is a Japanese company and I cannot say I am any sort of expert in Japanese financial laws and regulations (nor do I believe Wikipedia is an authority here either, or that an English definition from same has any bearing on a Japanese corporate structure).
Regardless, I am sure Hoya will do whatever makes the most overall financial sense to them, but it is entirely possible that tax regulations might very well distort that decision in ways that might not seem to make sense from other perspectives.
Ray