Tokyo, Sept 1, 2009 (JCN) - Combined sales at NEC Electronics and Renesas had 1.2 trillion yen (US$12.8 billion) last year and a merger would create Japan's biggest chipmaker, surpassing Toshiba with 30 percent of the global microcontroller market.
Negotiations between NEC Electronics, which had originally hoped for a merger with either the chip operations of Toshiba or Fujitsu, and Renesas have been rocky. The two companies had earlier targeted an official agreement in July, and had already postponed it once for an August date. The two sides needed to reach an agreement by August to get regulatory approval in time for an April merger.
NEC Electronics and Renesas Technology may receive a US$2.1 billion bailout from their parent companies to bring about the merger. The main sticking point in the deal was estimated at about 250 to 300 billion yen (US$2.66 billion- US$3.19 billion). Hitachi Ltd and Mitsubishi Electric Corp would allocate most of the 200 billion yen (US$2.1 billion) in aid being discussed while NEC Corp would shoulder some of the restructuring costs.
Print
Alerts
