Japanese telecom giant Nippon Telegraph and Telephone (NTT) on Tuesday announced a takeover bid worth about USD 40 billion to acquire a 100 per cent stake in its wireless subsidiary NTT Docomo.
NTT currently owns about 66 per cent of the mobile carrier, which is the most profitable part of the NTT group, reports NHK News.
The parent company has decided to take full control of Docomo by acquiring the roughly 34 per cent of outstanding stock in the company.
The telecom giant's management hopes to gain more profit from the wireless carrier, which has the most subscribers in Japan.
It also plans to strengthen alliances with other group companies that offer corporate telecommunication services and operate internationally.
NTT is aiming to boost its competitiveness in the fields of 5G and other next-generation communications. The move comes as Japan's new Prime Minister Suga Yoshihide said he wants to see lower mobile phone rates in the country.
NTT Docomo will be delisted from the Tokyo Stock Exchange once the tender offer is completed, said NHK News.