Coping With the "American Giants": Mergers and Attempted Partnerships in the European Computer Industry (1962–1964)

At the beginning of the 1960s, several Western European computer firms faced financial issues and pressure from U.S. competitors. A series of negotiations attempted to create a consortium of European manufacturers, and while some of these had a positive outcome, in general they did not succeed; by 1964 IBM had more than a 60% share of the European computer market and General Electric acquired two of the most prominent companies in Europe. This case study examines negotiations during the years 1962–1964, focusing on contacts between U.K. manufacturers English Electric, LEO Computers, and ICT, and Italian Olivetti, French Bull, and German Siemens.