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 Fujitsus net sales for the fiscal year ending March 31, 2011, and will not have a material impact on the companys earnings.
Toshibas consolidated business forecast for the current fiscal year, FY2010 ending on March 31, 2011, remains unchanged.