Philips pays $1.6bn for half of LG's active matrix LCD business

Philips pays $1.6bn for half of LG’s active matrix LCD business
Richard Wilson
Philips Electronics has agreed to acquire a 50 per cent share in the active matrix liquid crystal display business of South Korean firm LG. This represents a $1.6bn investment in the flat panel LCD business by the Dutch company.
LG’s LCD business is one of the world’s largest manufacturers of active matrix LCDs. It had sales of approximately $500m in 1998 in an AM LCD market estimated to be worth $8bn last year.
The new company will begin as a manufacturing and technology joint venture with the potential to develop into a full joint venture over time, incorporating all the AMLCD activities of both companies.
LG LCD and Philips will hold equal rights to manage the joint venture. LG LCD is made up of three production facilities in Kumi, Korea. As part of the deal production capacity at two of the Kumi sites will be expanded, and manufacturing of 680’880mm mother glass which will be the largest on the market, will be established at the third facility.

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