Fujitsu and Toshiba signed a memorandum of understanding that provides for the merger of their mobile phone areas, confirming the rumors that circulated earlier in the week.
According to the agreement, Toshiba will transfer its mobile phone business to a joint venture which will emerge in October, with Fujitsu acquiring the majority of the shares in the company.
With the creation of joint venture, Fujitsu and Toshiba want to take a leading position in the Japanese market. «The partnership in the area of mobile telephony will enable Fujitsu and Toshiba to strengthen their terminal development platforms for the Japanese market, allowing them to create more competitive products,» the companies said in a joint statement.
With the signing of the final contract scheduled for the end of July, the deal should be profitable at the end of the first year of activity, said a spokesman for Fujitsu, cited by Bloomberg. A total of 7.5 million mobile phones are expected to be sold by March 2012, 14 percent more than the current figure for joint sales.