Japan’s NTT looks to set up new firm in London despite Brexit risks
LONDON – NTT Corp. is planning to set up a new company in London to manage the group’s overseas operations, according to a source close to the matter, despite risks posed by the U.K.’s planned exit from the European Union.
The telecommunications giant will integrate its affiliate Dimension Data Holdings PLC and the overseas business of NTT Communications Corp. to establish the new firm in July, judging that the city will remain a hub of talent and information, the source said Monday.
Jason Goodall, group CEO at Dimension Data, is expected to take the helm of the new company, the source said. NTT is looking to strengthen its overseas business amid its shrinking domestic market.
Uncertainty over Brexit has already led some major Japanese firms to reduce investment in Britain or transfer their European bases to other EU countries due to fears they could face higher trade barriers for access to the bloc’s market.
Nissan Motor Co. said in February it was canceling a plan to produce the new model of the X-Trail sport utility vehicle in Britain, while Honda Motor Co. followed with an announcement that it was closing its British plant in 2021.
Toyota Motor Corp. has also hinted that it could end production in the country around 2023 if the U.K. leaves the European Union without a trade deal.