Japanese electronics firms Hitachi, Casio and NEC have announced plans to merge their mobile phone operations to become Japan’s second largest mobile phone manufacturer.
The three companies, which are relatively small players in the mobile phone market, will share both technology and resources. The move is said to cut costs and make the companies more competitive.
By next year, NEC will own 71 per cent of the new business, with Casio owning 20 per cent and Hitachi holding a nine per cent stake.
Casio and Hitachi had already created a joint mobile phone venture in 2004, making handsets for Japanese networks KDDI Corp and Softbank, while NEC makes phones for NTT Docomo and Softbank.