Fujitsu and Siemens have announced a merger agreement to expand their joint activities in the worldwide computer market.

From October 1st they will merge most of their European computer operations and establish a joint-venture company - Fujitsu Siemens Computers. The new entity will develop, manufacture and market a full range of information products.

Siemens has been looking for a partner for some time to help it crack the US and Asian markets, which it has traditionally had difficulty penetrating. Fujitsu has a long-standing relationship with Siemens over the last 20 years culminating in a number of strategic business collaborations in the computer field.

Siemens' Computer systems division recorded annual revenue of £3.15 billion (€4 billion) and has some 8,000 employees. Fujitsu Computers (Europe) had annual revenue of about £1.58 billion (€2 billion) and has 1,600 employees.

Fujitsu Siemens Computers aims to capture a top three industry position in the combined worldwide markets for personal computers, Intel based and Unix servers and large-scale enterprise systems. The combined sales of the two organisations in these markets currently place them in fifth position globally.

Mr Brendan Supple, general manager of Siemens Ireland, says the new collaboration is a welcome initiative. It remains unclear what the immediate impact will be on the Irish market, where Siemens employs 600 people. However, he said Siemens Ireland's current revenue growth of 30 per cent annually would ensure Siemens continued to increase employment here.

Fujitsu owns 90 per cent of ICL, the information technology systems and services supplier. ICL and Siemens recently announced the creation of 410 jobs here.