PHILIPS PLANS MEDICAL JOINT VENTURE WITH GEC
NV Philips
Gloeilampenfabrieken <PGLO.AS> and General Electric Co Plc
<GEC.L> are planning a 50-50 joint venture in the medical
equipment field, Philips announced.
    The venture will group all the medical systems of the two
companies, combining GEC's Ohio-based medical division Picker
International with Philips' medical division in a new
U.S.-based subsidiary.
    Picker employs 6,000 people worldwide and has production
and distribution facilities in North America, Britain, West
Germany, the Caribbean and Japan.
    Picker's turnover in the year ending March 31, 1986
totalled 612 mln dlrs, according to Philips.
    Philips' own medical systems activities, currently part of
its Professional Products and Systems division, with
headquarters in the Dutch town of Brest near Eindhoven, has
production facilities in the U.S., West Germany, France, Italy
and Britain as well as in the Netherlands.
    Its 1986 turnover was 2.82 billion guilders.
    Philips said GEC was planning substantial additional
investment in the project to bring its share to 50 pct.
    "The new company will be a vigorous competitor in all the
important areas in the world, with matching distribution
networks and other facilities capable of meeting the needs of
rapidly advancing technology in medical systems," Philips said.
    Dutch corporate analysts said the merger will create the
world's second biggest company specialised in medical
technology after U.S. General Electric Co <GE.N>.
    The new company should start operations in the second half
of this year, a Philips spokesman said.
 Reuter
