Two Japanese firms, Toshiba and Fujitsu have informed that they will merge their mobile phone businesses. Both of them are the leading players in the Japanese market but Sharp still holds the market leader position.

According to the market experts, this merging is in order to break the legacy of the domestic market leader Sharp. It is having a market share of 26.2% in the Japanese market.

On the other hand, the current combined market share of the merged entity is 18.7% after this merger. According to the sources, these two companies will emphasize to get hold of the smartphone segments in the market.

As per the deal between Toshiba and Fujitsu, a new company will be launched in the month of October this year. Fujitsu will have majority shares in this new company while Toshiba will transfer its complete mobile phone business to this newly formed business.

The terms of the deal have been all finalized. The final agreement has been scheduled to be signed in July.