Fujitsu Limited and Toshiba today announced that they have concluded a definitive agreement to merge their mobile phone businesses, for which the companies signed a memorandum of understanding (MOU) on June 17, 2010.
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.
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.
Fujitsu's mobile phone business will continue to operate as a unit within Fujitsu Limited.
As a result of the merger, it is expected that approximately 400 employees will be transferred from Toshiba to the Fujitsu Group.
The merger is expected to result in a 50.0-billion-yen 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.
Toshiba?s consolidated business forecast for the current fiscal year, FY2010 ending on March 31, 2011, remains unchanged.