BRUSSELS, Belgium --- The European Commission has cleared Hitachi Ltd. and Mitsubishi Electric Corp. to proceed with the proposed merger of their logic chip semiconductor operations. If successfully established Renesas Technology Corp. could be the world's second largest chip company with $7 billion annual sales.
The plan to name the operation Renesas was announced by Hitachi and Mitsubishi in October (see October 3 story).
With Hitachi owning 55% and Mitsubishi holding 45%, Renesas is due to be established on April 1, 2003.
The European Commission is the executive arm of the fifteen-nation European Union and has cleared the merger under a simplified merger review procedure, where if no objections are raised within a month of notification, clearance is automatic. The Commission was notified on October 23.