Keywords
Citation
(2001), "Philips and LG join forces in display components activities", Microelectronics International, Vol. 18 No. 1. https://doi.org/10.1108/mi.2001.21818aab.019
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Philips and LG join forces in display components activities
Philips and LG join forces in display components activities
Keywords: Philips, LG Electronics
Royal Philips Electronics and LG Electronics have announced the signing of a Letter of Intent through which the companies will merge their respective cathode ray tube (CRT) businesses into a new joint venture company. The transaction is expected to close in the first half of 2001 and is subject to customary regulatory approvals. Upon closure of the transaction, LG will receive an amount of $1.1 billion from the new company to close the difference in valuation.
The 50-50 joint venture in display technology concerns all CRT activities, and key components. Both companies have agreed to include their glass activities in the final agreement, and also aim to include their Plasma technology (PDP) activities, following valuations. With expected annual sales of nearly US$6 billion and approximately 36,000 employees, the new company will ensure a global leadership position in the CRT market.