Japan's Hitachi, NEC, Casio in phone merger talks
Sunday, 30 August 2009
TOKYO, Aug 29 (AFP): Hitachi Limited, NEC Corporation and Casio Computer Company are in talks about a possible merger of their mobile phone businesses in a bid to improve profitability, reports said Friday.
NEC is negotiating to take a stake of more than 50 per cent in Casio Hitachi Mobile Communications Company, a joint venture which was founded in 2004 by Casio and Hitachi, Kyodo News reported, citing unnamed sources.
Together the three would have the second-largest share in the Japanese mobile phone handset market, behind Sharp Corporation.
The three companies declined to confirm the report.
Most Japanese already own a mobile telephone and operators and handset manufactures are facing growing challenges to boost revenue in a crowded market, particularly given the weak economy and shrinking population.
NEC is negotiating to take a stake of more than 50 per cent in Casio Hitachi Mobile Communications Company, a joint venture which was founded in 2004 by Casio and Hitachi, Kyodo News reported, citing unnamed sources.
Together the three would have the second-largest share in the Japanese mobile phone handset market, behind Sharp Corporation.
The three companies declined to confirm the report.
Most Japanese already own a mobile telephone and operators and handset manufactures are facing growing challenges to boost revenue in a crowded market, particularly given the weak economy and shrinking population.