NEC, Casio Computer, and Hitachi have agreed to merge their mobile terminal business in April 2010, through the establishment of a joint venture company, in a bid to strengthen both domestic and international business.
In 2004, Casio and Hitachi jointly established Casio Hitachi Mobile Communications (CHMC), as a mobile terminal business company.
The new company will boast portfolio of products that draws strength from the integration of business functions between NEC’s mobile terminal operations unit and CHMC, as well as merges technologies and product development.
The three companies said in a joint statement: “NEC, Casio and Hitachi will integrate their mobile terminal business in order to strengthen both domestic and international business while increasing competitive strength and capitalising on each company’s brand recognition through achieving synergies in a variety of fields, including sales expansion, procurement and customer service; and reinforcing product development by unifying technological assets, know-how and resources.”
In the new joint venture company, NEC will own 66%, Casio will hold 17.34% and Hitachi will hold 16.66% stake. CHMC, currently a consolidated subsidiary of Casio, will become an equity-method affiliate with Casio holding a 20% stake in the new joint venture company as a result of its merger with the newly established NEC subsidiary and capital increase.
