Japanese electronics company Hitachi Ltd. and machinery maker Mitsubishi Heavy Industries Ltd. said they were scrapping plans to create a joint venture to combine their air-conditioning and refrigeration operations.
The companies had said in June 2004 that the integration would be completed by April 1 this year. Under the deal, Hitachi Air-Conditioning Systems, Hitachi's wholly owned unit, and Mitsubishi Heavy's air-conditioning and refrigeration systems division were to merge.
A new agreement was reached to form ties in specific areas of the air-conditioning business, such as development, procurement, and service operations, rather than seeking a full-scale integration, both sides said in a statement.
At the time of the initial agreement, the companies had said that combining technological efforts would help develop products that respond better to ecological concerns and will be critical in keeping up with expected growth in demand for air-conditioners in China.
In March, Hitachi and Mitsubishi Heavy said they would delay the establishment of the joint venture and decide on the timing for the merger later. (Forbes)
to Daily News