WorldWide Tech & Science. Francisco De Jesús.
Toshiba exits Fujitsu handsets Joint Venture.
Toshiba today confirmed long-standing speculation that it is exiting its Japanese mobile handset joint-venture with Fujitsu, by transferring its 19.9 percent stake in the venture to Fujitsu.
Fujitsu has increased its stake from 80.1 percent to 100 percent as a result of the deal and is expected integrate the subsidiary with its existing mobile devices business. Financial terms were not disclosed.
Formed in October 2010 as a consolidated subsidiary of the Fujitsu Group, Fujitsu Toshiba Mobile Communications will now be renamed Fujitsu Mobile Communications and will become wholly-owned by its parent.
The JV has approximately 300 employees and a market cap of around JPY450 million (US$5.4 million).
Fujitsu Toshiba Mobile mainly builds 3G devices for Japan’s second-placed operator, KDDI, but had struggled to build market share in the crowded Japanese handsets market.
For Toshiba, the JV was seen as an attempt to shore up losses in its former own-branded handset operations by letting Fujitsu effectively oversee its mobile business.