A Trojan Horse In Europe?

For years IBM's competitors have been doggedly pushing to break the lock the American giant holds on the global market for computers. Still, Big Blue controls more than 35% of the worldwide business, far more than any of its rivals. But last week Japan's leading computer firm, Fujitsu, moved somewhat closer to realizing the goal when it agreed to pay $1.3 billion for an 80% stake in International Computers Limited, Britain's leading computer manufacturer. The deal, which must still be approved by the British government, is Japan's largest acquisition in the computer industry, and will give the combined firm almost 6% of the world market.

The takeover will vault Fujitsu past the U.S.'s Digital Equipment to become the world's second ranking computer maker. For the first time, a Japanese technology company will control a major position on the Continent, just in time for the integration of the European market in 1992. Though no E.C. official has spoken against the takeover, strong opposition may soon be heard. Says Tim Marrable, who follows the computer industry for Kleinwort Benson in Tokyo: "You can more or less expect France to come out and accuse Britain of bringing another Japanese Trojan horse into Europe." Analysts anticipate a heated debate about whether the Community should revoke ICL's rights to participate in E.C.-sponsored high-tech research projects now that the computer maker answers to a Japanese firm.

To blunt such objections, Takuma Yamamoto, Fujitsu's chairman, announced that ICL intends to keep its current management. Fujitsu also plans to issue ICL shares on the London Stock Exchange within the next five years. Still, since the mainframe industry has become an increasingly competitive, slow- growing business, Fujitsu probably looks to ICL for something other than its capacity to simply churn out machines. Katsumi Tsuzura, an analyst for Japan's LTCB Research Institute, suggests that ICL's strongest attraction is its "established brand name in Europe."

As Fujitsu moves to seize a greater market share in Europe, it is likely to move cautiously, though surefootedly. No one appreciates that threat more than IBM.