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Fujitsu and Toshiba confirm mobile phone merger

Japanese giants Fujitsu and Toshiba have agreed to merge their mobile phone businesses as we suggested earlier.

The Wall Street Journal confirms (opens in new tab)that Fujitsu will effectively take control of Toshiba's mobile phone business, after the pair said they'd cobbled together the bones of an agreement today.

The deal will create Japan's second-largest handset maker behind Sharp. Fujitsu will take the majority share of the joint-venture which will launch on October 1st.

Fujitsu currently makes phones for NTT DoCoMo, while Toshiba mainly supplies the KDDI network, allowing for the possibility of cross-network handsets and greater potential economies of scale.

Japan's mobile phone market is virtually saturated as pretty much everyone over the age of six has a phone. The Japanese are also struggling to beat off competition from the likes of the iPhone. monitors all leading technology stories and rounds them up to help you save time hunting them down.