Mergers and Acquistions News
Categories: Semi-Conductors
April 28th 2009, 14:45PM
NEC Electronics and Renesas Technology Corp have agreed to enter negotiations which could pave the way for a merger.
If a deal is thrashed out, the merger would create a new giant in the semiconductors technology, behind only Intel and Samsung Electronics.
A statement from the two companies outlined the motives for the mooted merger.
It commented on the "fierce global competition" in the current marketplace, stating that integration could strengthen core businesses and technological assets, increasing corporate value through attaining greater customer satisfaction.
Both firms focus on the system-on-chip (SoCs) field sector, with the NEC specialising in consumer electronics and Renesas focusing on telecoms, so together they say they will be able to offer competitive SoC products.
Takeo Miyamoto, an analyst for Deutsche Securities, implied that the deal could lead to some difficult decisions for either company.
"The companies have a lot of overlapping businesses, and it would be impossible to keep all of the operations," he said.
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