Corporations Changed Names More Than Ever in 2000

  • by January 11, 2001
The significance of a corporation's name received new recognition during 2000, with no fewer than 3893 corporations around the world adopting new names.

"The lure of the dotcom designator has peaked," said Enterprise IG CEO Jim Johnson, releasing his firm's 2000 survey of corporate name changes released recently by the global brand and identity consultants. "The trend is now toward more traditional names that are able to be used globally."

The survey encompassed corporate name changes in 56 countries outside the US. While US firms continued to be in the majority, a growing number of European and Asian companies recognized the value inherent in selecting a corporate name appropriate to their increasingly global operations. The reported name changes stretched from the Baltic states to South Africa and across Europe and the Middle East to Nepal, Malaysia, China, and Japan.

Corporate name changes among US companies totaled 2976, up 9% from 1999; covering listed corporations on the New York and American stock exchanges, the NASDAQ, major privately held companies, and US subsidiaries of foreign firms.

Beyond the US, the United Kingdom chalked up the highest number with 250, followed by Canada with 186. Germany with 74, France with 56, and Japan with 35. Among US corporations, geographically New York led the list with 299 name changes; California was second with 178; Massachusetts third with 75; Texas fourth with 70; and Pennsylvania fifth with 56.

Jim Johnson assessed that "The continued globalization of corporations and their market is driving an accelerating need for name changes, despite the difficulties posed by cultural, linguistic and trademark challenges.

"Part of the impetus for a new company name comes from the many corporate mergers and consolidations taking place today, transAtlantic, panEuropean, and transPacific."

Mergers and acquisitions totaled 2054 or 53%; followed by 1456 or 37% of new names not occasioned by a corporate consolidation. These corporate changes, whether merger, acquisition, or other form of corporate reorganization, accounted for the bulk of the new names.

Especially notable were the rising number of European acquisitions of US and Canadian firms.

Both in the US and abroad, financial institutions, including commercial banks, thrifts, investment banking houses, brokerages and mutual funds, accounted for the highest number of worldwide name changes with 1566 or 40%. In second place were communications firms with 789 or 20%, followed by manufacturing and industrial with 336 or 9%. Both mergers and internal reorganization by financial houses produced a sizable number of name changes among mutual funds and other investment vehicles, including the merger of poorer performing units into their better performing peers.

Among prominent corporate names that change during the year, the French media and entertainment giant Vivendi acquired Seagram's entertainment arm and became Vivendi Universal. I

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