Japanese telecoms service providers eAccess and Willcom, both subsidiaries of SoftBank Corp, have signed a Memorandum of Understanding (MoU) to merge their operations, effective 1 April 2014, in order to better utilise their business resources. The merged company, which will operate under the eAccess banner, will serve more than ten million subscribers, including 4.4 million eAccess customers and 5.7 million subscribers to Willcom’s services. According to a joint press release, the enlarged company ‘will continue to expand the growth of both mobile and fixed broadband businesses provided by eAccess, as well as the personal handy-phone systems (PHS) business provided by Willcom, while paying special attention to the smartphone market where there is big potential for growth’.
The consideration payable to SoftBank Corp, which is the sole shareholder of Willcom, is currently under discussion and will be outlined in the merger agreement. Further, the merger plan will be presented for approval to the Board of Directors in late January 2014, and final approval is expected to be secured in mid-February 2014, at an extraordinary shareholders’ meeting.