SWCC Set to Acquire Full Control of SFCC by Consolidating Furukawa's Minority Stake

SWCC Corporation's board has given the green light to acquire Furukawa Electric's 20% minority stake in Showa Furukawa Cable Co. (SFCC), effectively unwinding their five-year joint venture arrangement. The completion date is slated for March 31, 2026, at which point SFCC will transition into a fully owned SWCC subsidiary.

**Background of the Joint Venture**

The partnership between SWCC and Furukawa Electric was established in 2020 as a strategic response to shrinking demand across Japan's construction and electrical equipment sectors. By combining their sales and logistics operations through SFCC, both companies aimed to optimize cost structures and maintain market competitiveness during the industry downturn.

**Operational Integration**

Building on the initial consolidation, SWCC and Furukawa Electric took the partnership further in 2022 by merging cable manufacturing operations into SFCC. This move was designed to streamline production processes and enhance overall operational efficiency. The integration reflected both partners' commitment to strengthening SFCC's market position amid persistent headwinds in domestic demand.

**Financial Considerations and Timeline**

While the specific purchase price for Furukawa Electric's stake remains undisclosed, SWCC has indicated that the transaction will have negligible effects on its earnings for the current fiscal year. The acquisition structure effectively allows SWCC to assume full operational and strategic control of SFCC, enabling more streamlined decision-making and unified business direction going forward.

By consolidating this minority stake, SWCC is positioning itself to maximize synergies from the integrated cable operations and sales infrastructure that have developed over the five-year partnership period.