View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 25, 1997updated 03 Sep 2016 9:57pm

KDD AND TELEWAY FINALLY CONFIRM MERGER PLAN

By CBR Staff Writer

After spending most of the weekend denying reports of what everyone else seemed to know, yesterday KDD Co, Japan’s largest international telecommunications company, did announce that it and Teleway Corp plan to merge next October 1. The deal which had been mooted for sometime, will see the two companies join KDD’s undersea fiber-optic cable and Teleway’s high-capacity domestic optic fiber network. According to Teleway, the deal is the basis for an aggressive expansion of sales in both domestic and international markets. KDD currently controls more than 60% of Japan’s international call market. Although Teleway is yet to turn around a profitable year it is also attractive to KDD because of the company’s cash resources. Teleway is the focus for cash-rich Toyota Motor Corp, the world’s third-largest carmaker, to move into the telecoms market. Teleway has more than $15bn in cash and short-term deposits. In September, Toyota said it would lead a 49.8bn yen rescue of Teleway. In return, Toyota’s stake in Teleway was expected to jump to more than 50% from 38.3%. Toyota also owns 27.2% of privately held IDO Corp, a cellular phone operator, and 17.6 percent of International Digital Communications Inc, an overseas carrier that competes with KDD. KDD’s and Teleway’s combined sales of 431bn yen in the year to March 31 would rank it the fourth-largest telecommunications company in Japan after NTT, DDI Corp and Japan Telecom Co.

Content from our partners
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape
Green for go: Transforming trade in the UK

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU