NEC Electronics, Renesas Technology Push Back Merger Agreement
July 31, 2009
Japanese chip makers NEC Electronics and Renesas
Technology jointly announced on July 28 that they will defer the completion of
a business integration agreement from the end of July to the end of August this
year, Nikkei reported. On April 27, 2009, the two companies said that they have
been seeking to merge business operations into one company, with NEC
Electronics expected to absorb Renesas by April 2010. Nevertheless, as due
diligence on both companies' assets, including the manufacturing and sales
sites worldwide, is still underway, the two companies have decided to push
back the deadline for merger agreement by one month. It is reported that after
the merger deal go through, NEC Electronics and Renesas, a joint venture
between Hitachi and Mitsubishi Electric, will form a new integrated company
focusing on the three main fields of MCU (Microcontroller Unit), SoC (System on
Chip), and discrete products.