Fujitsu Limited and Toshiba Corporation have signed a memorandum of understanding to merge their mobile phone businesses. Toshiba will transfer its mobile phone business to a new company that'll be set up in October 2010, with Fujitsu acquiring a majority of the shares in the company.
The aim is for the merged Fujitsu and Toshiba business to become the leading provider of mobile phones in Japan. Fujitsu currently manufactures mobile phones for sale through NTT DOCOMO, while Toshiba manufactures a range of mobile phone handsets that are sold by KDDI Corporation, NTT DOCOMO, and Softbank. Fujitsu and Toshiba plan to sign a final contract at the end of July.