Fujitsu Ltd. has revealed plans to buy out its mobile phone joint venture with Toshiba Corp. next year, a deal that is expected to pull Toshiba out of the handset business.
Fujitsu currently holds an 80.1 percent stake in Fujitsu Toshiba Mobile Communications Ltd. and intends to make the joint venture its wholly owned subsidiary as early as the first half of 2012 by acquiring the remaining 19.9 percent stake from Toshiba.
The joint venture was launched in October 2010. The combined market share of Fujitsu's mobile phone unit and the joint venture currently accounts for about 20 percent in the nation, the second-largest after Sharp Corp.
Toshiba wants to concentrate management resources on its core businesses such as semiconductors, some observers said. As Fujitsu has a dominant position in the joint venture, the company agreed to buy out Toshiba's stake, sources said.
Fujitsu's mobile phone unit has developed handsets for NTT Docomo Inc., while the joint venture has supplied handsets for KDDI Corp. and others. Fujitsu likely plans to cut development and other costs by integrating operations of its mobile phone unit and the joint venture.
After the joint venture is dissolved, Fujitsu will no longer be able to sell smartphones using the "Regza" brand, which is also the name of a popular range of Toshiba LCD TVs. The company will market smartphones with a different brand name.
Fujitsu also said it planned to enter the U.S. and European markets next year.
No comments:
Post a Comment