In a statement, the companies jointly said they have planned an agreement to integrate their mobile terminal businesses in April 2010, through the establishment of a joint venture company. The merger would create a cell phone maker with a domestic market share of about 20 per cent, according to market research company BCN.
In the new entity, which would be called ‘NEC CASIO Mobile Communications’, NEC would hold 70.7 per cent stake, Casio 20 per cent and the rest of 9.26 per cent stake by Hitachi.
In 2004, Casio and Hitachi had jointly established Casio Hitachi Mobile Communications (CHMC) as a mobile terminal business company .
“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... by unifying technological assets, know-how and resources,” three companies said in a statement.
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