Business · Companies · 1 day ago

Sony Group and Resonac point to spin-offs as a way to energize Japan’s big companies

Sony Group and Resonac point to spin-offs as a way to energize Japan’s big companies

A spin-off is when a company separates one of its businesses into an independent company.

Spin-offs have long been common in the United States but were rare in Japan.

In recent years, changes to tax rules and leadership transitions have helped bring more Japanese examples into view.

Sony Group and Resonac are among the companies cited as having pursued the approach.

Separating a business can give it more independence, and the commentary argues this could help traditional Japanese companies become more dynamic.

It calls on more companies to consider spin-offs seriously.

The text does not describe any specific next steps.

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