According to the report recently, Japan's biggest industrial electronics company Hitachi and leading heavy machinery maker Mitsubishi Heavy Industries Ltd, may combinate to create one of the world's largest infrastructure firms.
The recent response from Hitachi or Mitsubishi Heavy said that no agreement had been reached on a merger after the Tokyo Stock Exchange suspended trade in their shares. An announcement outlining their plans to start talks would come later on Thursday,.
A combination would be one of the largest ever in Japan. Hitachi, with a market value of $27 billion, would likely be the acquirer of Mitsubishi Heavy, valued at nearly $16 billion as of Wednesday's closing price.
By combining their reactor businesses, the two firms would be better positioned to weather an industry downturn as nations around the world shun nuclear energy following the Fukushima crisis.
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