NEC Electronics and Renesas will integrate their operations and generate synergies to specialize in microcontroller unit (MCU), system-on-chip (SoC) and discrete products, according to companies.
NEC Electronics, Renesas Technology, NEC, Hitachi and Mitsubishi Electric have signed a definitive agreement to inject a total of 200 billion yen (US$2.2 billion) into the merger between NEC Electronics and Renesas. The merger will be effective on April 1, 2010 with NEC Electronics being the surviving entity.
Renesas will issue shares of Renesas common stock to Hitachi and Mitsubishi, the sole shareholders of Renesas, in exchange for a total of 78 billion yen prior to the merger’s effective date. In addition, the integrated company will issue shares of its common stock to NEC, Hitachi and Mitsubishi in exchange for a total of approximately 122 billion yen.