Pegatron, a Taiwanese electronics manufacturing company, agreed to acquire Casetek, a contract making unit and manufacturer of OEM products for consumer electronics, for c. $1bn. As a result of the merger, Casetek will become a wholly-owned subsidiary of Pegatron. Pegatron Group believes that the merger with Casetek may eliminate the resource allocation constraints resulted from independently operating as two listed entities. In addition, this merger is expected to allow greater flexibility in adjusting the companies' business models and financial structures in several aspects including human resources, finance, capital structures, businesses and products and to further maximize profitability at group level.