Fujitsu Limited and Toshiba Corporation have signed a memorandum of understanding (MOU) to merge their mobile phone businesses. According to the MOU, Toshiba will transfer its mobile phone business to a new company to be established on October 1, 2010, and Fujitsu will acquire a majority of the shares in the company. By merging their mobile phones businesses, Fujitsu and Toshiba are aiming to become the No.1 provider of mobile phones in Japan. Collaboration in the mobile phone business will allow Fujitsu and Toshiba to strengthen their handset development platforms for the Japanese market and enable the companies to continue to create highly competitive products for their customers. By combining their mobile phone development know-how and technological strengths, Fujitsu and Toshiba intend on enhancing their handset development capabilities and at the same time improving business efficiency. This merger will be leveraged to develop next-generation handsets for the expanding smartphone markets in and outside Japan. Fujitsu and Toshiba plan to sign a final contract at the end of July 2010.