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Japan: Government funding boosts Fujitsu, Panasonic chip merger

By  |  April 23, 2014

More than one year after tech firms Fujitsu and Panasonic announced plans to merge their system chip businesses, the deal is finally getting a boost through funding secured by the Japanese government.

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    The companies announced Wednesday that $195 million has been invested into the transaction by the state-owned Development Bank of Japan. That investment will be supplemented by a loan.

    The funding gives the bank 40 percent of voting rights in the newly merged company. Fujitsu will similarly hold 40 percent, where Panasonic will hold the remaining 20 percent.

    The deal, first announced in February of 2013, hit a snag over disagreements of how much DBJ should invest and how the newly merged company would proceed in the market.

    Full Content: Wall Street Journal

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