Hope they come up with a good name.
Fujitsu Limited and Toshiba Corp. today announced that they have concluded a definitive agreement to merge their mobile phone businesses. Under this agreement, Toshiba will transfer its mobile phone business to a new company that will be managed by Fujitsu. The companies aim to complete the merger by the target date of October 1, 2010.
As competition in the mobile phone market intensifies both in Japan and across the globe, Fujitsu and Toshiba intend on enhancing their handset development capabilities and at the same time improving business efficiency by combining their mobile phone development know-how and technological strengths through the merger of their mobile phone businesses. After the merger, the companies aim to become the No. 1 supplier of mobile phones in Japan by providing highly-competitive products that meet customer needs.
Toshiba will transfer its mobile phone business to a newly-established company. Fujitsu plans to acquire from Toshiba 80.1% of the shares of the new company by the target date of October 1, 2010, at which point the new company will become a subsidiary of Fujitsu. The merger is expected to result in a ¥50 billion increase in Fujitsu’s net sales for the fiscal year ending March 31, 2011, and will not have a material impact on the company’s earnings.
Fujitsu's mobile phone business will continue to operate as a unit within Fujitsu Limited.