NEC, Hitachi and Casio combine to become third largest mobile phone company in Japan.

Japanese electronics companies – NEC, Hitachi and Casio – have announced plans to merge their mobile operations to cut costs and increase market size.

In 2004, Casio and Hitachi jointly established Casio Hitachi Mobile Communications (CHMC) in order to capitalise on the technologies from both companies. CHMC currently provides mainly CDMA-focused mobile handsets for a number of Japan-based companies, as well as Verizon Wireless in the US and LG Telecom in Korea.

The new company, NEC CASIO Mobile Communications Ltd, will “strengthen both domestic and international business while increasing competitive strength and capitalising on each company’s brand recognition.”

The trio anticipate cost savings will be a major by-product of the venture as it achieves synergies across sales, customer service and procurement. The new company is also anticipating an advancement in technology as it pools resources and know-how.

engadget.com revealed in August that rumours were circulating from Japan of a possible venture between the three companies .  The merger will give the combined company a market share of around 15% according to market research company BCN, ranking third behind Sharp and Panasonic.

It is anticipated that the new company will be approved by April 2010, at which point NEC will own 71% of the business, with Casio owning 20% and Hitachi holding a 9% share.