NEC, Casio and Hitachi announced an agreement for establishment of a joint venture company

agreementNEC Corporation , Casio Computer Co., Ltd. , and Hitachi, Ltd.  today announced an agreement to integrate their mobile terminal businesses in April 2010 through the establishment of a joint venture company.

1. About the Business Integration

NEC develops and manufactures mobile terminals for NTT DOCOMO, INC. and SoftBank Mobile Corp. that capitalize on the company’s core competencies and incorporate wireless communications technologies such as W-CDMAand LTE , Linux platform development, low power consumption innovations and ultra-thin technologies.

brands

In 2004, Casio and Hitachi jointly established Casio Hitachi Mobile Communications Co., Ltd. (CHMC) as a mobile terminal business company. CHMC capitalizes on image technologies from Casio’s digital camera business, water/shock resistance technologies from Casio’s wristwatch development and Hitachi’s image processing technologies in order to provide mainly CDMA focused mobile handsets for KDDI Corporation and SoftBank Mobile Corp. in Japan as well as Verizon Wireless in the USA and LG Telecom in the Republic of Korea.

The new company will boast a competitive portfolio of products that draws strength from the complete integration of business functions between NEC’s Mobile Terminal Operations Unit and CHMC, as well as merges the advanced technologies and product development experience of each company. Furthermore, NEC’s IT/Network technology supported product development capabilities linked to service business for enterprises and consumers, combined with CHMC’s consumer product technologies and planning strength, is expected to result in the creation of innovative synergies and the development of appealing new products, in addition to future growth that is anticipated from a range of new areas.

NEC, Casio and Hitachi will integrate their mobile terminal business in order to strengthen both domestic and international business while increasing competitive strength and capitalizing on each company’s brand recognition through (1) achieving synergies in a variety of fields, including sales expansion, procurement and customer service, and (2) reinforcing product development by unifying technological assets, know-how and resources.

2. About the New Joint Venture Company

Overview of the new joint venture company formed through the integration of NEC’s Mobile Terminal Operations Unit with CHMC

Company Name: NEC CASIO Mobile Communications, Ltd.

Head Office: Kawasaki City, Kanagawa Prefecture, Japan (NEC

Tamagawa plant)

Capital: 1 billion JPY (at start of the joint venture)

Share: NEC: 66%, Casio: 17.34%, Hitachi: 16.66%

Capital increase planned to take place by the end of June 2010

Capital after increase: 5 billion JPY

Share after capital increase: NEC: 70.74%, Casio: 20%,

Hitachi: 9.26%

Number of Board Members: 8 (NEC: 6, Casio: 2, representative director

selected by NEC)

Consolidated Number of Employees:

2,200 including NEC Saitama (non-consolidated: 1,300)

Established: April 2010 (planned)

Accounting Period: April to March

Business Summary: Mobile terminal product planning,

development, production, sales and maintenance

3. Business Integration Procedure

1) By the end of December 2009: NEC establishes a 100% subsidiary company

2) April 2010: The newly established subsidiary takes over NEC’s mobile handset business through company split

3) Same day as (2): The newly established company merges with CHMC (*5)

Other terms and conditions relating to the merger of the newly established subsidiary with CHMC are currently under discussion. The details will be announced upon their conclusion.

Source: Hitechi

Related posts

SanDisk presents world’s fastest microSD card

SanDisk presents world’s fastest microSD card

The US memory card maker SanDisk has presented a new microSD card at the on-going MWC 2016. The company claims that the new card, known as SanDisk Extreme PRO microSDXC UHS-II is the fastest in the world. We can understand the US company – after all do you really want to have a smartphone...

Plextor unveils M6 Pro SSD line

Plextor unveils M6 Pro SSD line

Plextor has taken the chance to present yet another new solid-state drive line at Computex 2014 but this one promises to be rather interesting. The new SSD line is called M6 Pro SATA SSD and comes with the rather interesting PlexTurbo technology. This technology is in fact intelligent SSD...

ZTE presents budget Star 3 smartphone

ZTE presents budget Star 3 smartphone

ZTE is back with a new smartphone but this time we won’t be dealing with high-end phablets or even smartwatches – instead fans of the brand will get the Star 3 smartphone, which happens to be a budget-oriented handset. The device measures 155.3 x 77.2 x 8.55 mm and weighs 160 grams. The first...

Leave a comment