Wednesday, Japanese electronic companies NEC Electronics Corp. (NELTF.PK), Renesas Technology Corp., NEC Corp. (NIPNF.PK), Hitachi, Ltd. (HIT), and Mitsubishi Electric Corp. (MIELY.PK, MIELF.PK) announced that the companies have decided to postpone the conclusion of a definitive agreement to integrate business operations at NEC Electronics and Renesas until the end of September. Renesas is a joint venture between Hitachi and Mitsubishi Electric.
It was on April 27 that the companies signed a basic agreement for the integration of business operations at NEC Electronics and Renesas. The companies now said that since then they have been in negotiations to integrate business operations. Due diligence has been completed, and the companies are now working on the final stages of the agreement.
The companies pointed out that to achieve the business integration in April 2010, they will continue to engage in proactive negotiations aiming to reach a definitive agreement by the end of September.
In April, the companies noted that the integration of the businesses would establish 'the world's third largest semiconductor company.'
NEC Electronics was formed in 2002 after separating from NEC and Renesas was formed in 2003, following the integration of semiconductor units at Hitachi and Mitsubishi Electric. Both NEC Electronics and Renesas provide semiconductor solutions mainly in microcontroller units, or MCUs, and also focus on the field of system-on-chip or SoCs, products.
As per the previous announcement, upon completion of respective structural reforms, the two companies would integrate their operations and have three major product groups namely MCUs, SoCs and discrete products.
Meanwhile, media reported Wednesday, citing sources close to the matter, that Renesas may get a cash infusion from its two parent companies, Hitachi and Mitsubishi Electric, to keep it moving toward a merger with NEC Electronics. Hitachi, Mitsubishi Electric and NEC are reportedly in talks to infuse a total of about 200 billion yen into Renesas and NEC Electronics to help smooth the way toward a merger.
NIPNF.PK closed Tuesday's trading at $3.45, up $0.05 or 1.47%, on a volume of 33,183 shares, while NELTF.PK last traded on August 18 at $9.56.
HIT settled on Tuesday at $35.31, up $0.14 or 0.40%, on a volume of 37 thousand shares.
MIELY.PK last traded on August 21 at $74.70, and MIELF.PK last traded on July 24 at $5.81.
For comments and feedback: editorial@rttnews.com