Japan’s NEC Corporation, Casio Computer and Hitachi have decided to merge their mobile phone manufacturing operations to reduce costs and push into overseas markets.

Japan’s NEC Corporation, Casio Computer and Hitachi have decided to merge their mobile phone manufacturing operations to reduce costs and push into overseas markets. The integration is likely to take place in April 2010 when the three companies will form a new joint venture (JV), called NEC Casio Mobile Communications, which will be Japan’s second largest handset maker by shipments after Sharp Corporation. The venture will be controlled by NEC, which will take a 71 per cent equity stake in the JV, with Casio owning 20 per cent and Hitachi owning a 9 per cent stake. The agreement comes amidst growing pressure on Japanese cellular phone-makers to regain momentum in the nearsaturated domestic market. The group will seek growth in developing international markets such as China where Sharp already sells mobile handsets.