LONDON Japanese chipmakers NEC Electronics Corp. and Renesas Technology Corp. said Wednesday (Aug. 26) that they will delay the signing of a merger agreement until the end of September. This is the second time in a month the companies have delayed the prospective merger.
A deal between Renesas and NEC Electronics would create the world's third largest chip company behind Intel of the U.S. and Samsung of South Korea. However the two Japanese companies said on July 28 that they would delay the signing of a merger agreement until the end of August because due diligence was taking longer than expected.
NEC Electronics, Renesas Technology, NEC Corp.,Hitachi and Mitsubishi Electric announced jointly on Wednesday (Aug. 26) that although the due diligence was now complete the companies had decided to postpone the conclusion of a definitive merger agreement until the end of September.
The companies signed a basic agreement on April 27, 2009, and since then have been in negotiations. The companies said they are now working on the final stages of the agreement with a view to completing the integration by April 2010. The companies said they would continue to engage in "proactive negotiations" aimed at reaching a definitive agreement by the end of September.
Related links and articles:
Test house rates Renesas microcontrollers for EMC
NEC Electronics CEO steps down amid losses
Opinion: Winners, losers in Renesas-NEC deal