The Japanese electronics giants Toshiba and Fujitsu have announced they have agreed a deal to merge their mobile phone businesses.
Under the terms of the agreement, Toshiba will transfer its mobile phone business to a new company to be established in October of this year, with Fujitsu acquiring a majority of the shares in this company.
The two firms say that by merging their mobile phone businesses they are aiming to become the No 1 provider of mobile phones in Japan.
Toshiba and Fujitsu said they intend to use their backgrounds in designing compact, functional handsets to develop “highly competitive next-generation handsets” for the expanding smartphone market.
“By combining their mobile phone development know-how and technological strengths, Fujitsu and Toshiba intend on enhancing their handset development capabilities and at the same time improving business efficiency,” the companies said in a joint statement.
The two firms said they intend to sign a final contract on the deal at the end of July.
Article courtesty of Businessandleadership.com