 |
 |
17 Jun 2002
Royal Philips Electronics of the Netherlands and LG Electronics of South Korea are to merge their cathode ray tube activities to form a joint venture company in the first half of next year. LG will receive $ 1.1 billion from the new company to make up the difference in the valuation of the two companies' assets in the field.
The joint venture concerns all CRT activities and key components. Both companies have agreed to include their glass activities in the agreement and aim to include their plasma display panel activities. The new company will have expected sales of almost $ 6 billion and 36 000 employees and place it number one in the CRT market. Philips is already the number one supplier of television tubes and the number 5 in computer monitor tubes. LG is globally number 3 in television and monitor tubes and leader in monitors.
The new company will be legally established in the Netherlands with operational headquarters in Hong Kong. Philippe Combes, currently CEO of Philips Display Components will head the joint venture. LG.Philips LCD Co., the existing 50-50 venture between Philips and LG in active matrix liquid crystal displays will remain unaffected by the transaction.
Commenting on the agreement, Gerard Kleisterlee, chief operating officer of Royal Philips Electronics, said: "The deal is consistent with the strategy of Philips, focusing on high-growth digital markets, while co-operating on the level of enabling technologies. Our combined technological strength, together with Philips' market leadership and LG's manufacturing expertise, is an extremely powerful proposition."
Links:http://www.acttel.nl/philips/philips.html
http://www.news.philips.com/
 |  |  |  |  |  |  |
| © 2024 SPIE Europe |
|
