Mergers and Acquistions News
Categories: Hardware
December 28th 2011, 11:29AM
Sony has announced that it will sell all of its shares in an LCD panel manufacturing joint venture to Samsung for $940 million (£600 million).
The acquisition deal will now mean that S-LCD Corporation will become a wholly-owned subsidiary of Samsung Electronics. Sony had almost a 50 per cent stake in the venture, but has recently made losses in its TV business arm.
However, the deal also involved a new strategic agreement for the supply and purchase of LCD panels and the two companies will continue with cooperative engineering efforts of the technology.
Sony explained that the transaction will allow it to secure a flexible and steady supply of LCD panels from Samsung without the costs of manufacturing.
The share transfer and payment are expected to close by the end of January 2012.
Reuters reported that Sony is predicting its TV unit to lose $2.2 billion for the financial year to March owing to falling demand. This move with Samsung has also resulted in a loss for the company.
The news provider also stated that Sony is looking beyond the now-deflated LCD TV market and will focus on competing in the smartphone market.
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