November 12, 2012 / 11:10 PM / 5 years ago

UPDATE 1-Hitachi Metals, Hitachi Cable to merge - Nikkei

(Adds company comment)

TOKYO, Nov 13 (Reuters) - Hitachi Ltd subsidiaries Hitachi Metals Ltd and Hitachi Cable Ltd plan to merge in April, creating a materials producer with businesses ranging from automotive and electronics parts to fiber optics, the Nikkei reported.

The merged Hitachi Materials company will have nearly 1 trillion yen ($12.6 billion) in annual revenue, the Japanese daily said, adding that the companies will hold board meetings on Tuesday to agree on the deal.

Hitachi Metals spokeswoman Akio Minami said nothing had been decided, but confirmed the company was holding a board meeting in the afternoon.

Hitachi Cable also it had a scheduled board meeting later in the day, but could not comment on the report.

Hitachi Metals reported sales of 556.9 billion yen for the year ended March 31, while Hitachi Cable’s logged sales were 432.5 billion yen, the paper said.

Hitachi Cable, which makes electrical wires, semiconductors and electronic materials, is bracing for the fifth consecutive year of net loss, the daily said.

Hitachi Metals controls roughly 40 percent of the global market for high-performance magnets used in drive motors for hybrid and electric vehicles, the Nikkei said. ($1 = 79.4200 Japanese yen) (Reporting by Mari Saito in Tokyo, Pallavi Ail in Bangalore; Editing by Don Sebastian and Eric Meijer)

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