Compounding the trend of manufacturing moving east, Thailand's listed Delta Electronics has bought the power supply business of Switzerland's Ascom Holdings for $110 million.
The move takes the Delta Group into a global leadership position in the area that produces sub-systems for telecoms base stations and data centres - a market estimated to be worth $2.7 billion in 2003 sales.
It is obviously a market segment that has been pounded by the telecom tech downturn, with Ascom deciding to exit the area because it was non-core and because it needed to raise cash to restructure and reduce debt levels.
It could prove to be a smart move for Delta...
