NEC, Renesas Sign Definitive Merger Agreement
September 26, 2009
NEC Electronics, Renesas Technology, and
Renesas's parent companies Hitachi and Mitsubishi Electric have signed a
definitive merger agreement to integrate chipmaking business operations at NEC
Electronics and Renesas, Nikkei reported on September 18. Slated to take effect
on April 1, 2010, the merger will create a newly integrated company named
Renesas Electronics. Pursuant to the terms of the agreement, Renesas will issue
common shares to its parent companies Hitachi and Mitsubishi in exchange for 78
billion Yen (US$863.8 million; US$1=90.3 Yen) prior to business integration.
After merger, the integrated company will issue common shares to NEC, Hitachi,
and Mitsubishi in exchange for approximately 122 billion Yen (US$1.4 billion).
It is projected that the newly integrated company Renesas Electronics will
focus on three main product segments: MCU (Microcontroller Unit), SoC (System
on Chip), and discrete products.