<p>South Korean giant Samsung Electronics today said it will buy out Japanese major Sony Corp's stake in their LCD manufacturing joint venture for 1.08 trillion won (USD 940 million).<br /><br /></p>.<p>The joint-venture was established in 2004, when the global economy witnessed a growth in demand for consumer electronics. However, the LCD panel and TV market conditions have changed since then.<br /><br />"In order to respond to such challenging conditions and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance," Sony and Samsung said in a joint statement.<br /><br />"Under the agreement, Samsung will acquire all of Sony's shares of S-LCD Corporation, the two companies' LCD ((liquid crystal display) panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung," they said.<br /><br />The share transfer and payments are expected to close by the end of January 2012, subject to necessary approvals from regulatory authorities.<br /><br />The transaction will enable Japanese electronic giant Sony to monetise its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility.<br /><br />The agreement would allow Samsung and Sony to continue cooperative engineering efforts focused on LCD panel technology.<br /><br />Samsung expects that the whole ownership of S-LCD will provide it increased flexibility, speed and efficiency in both panel production and business operations.</p>
<p>South Korean giant Samsung Electronics today said it will buy out Japanese major Sony Corp's stake in their LCD manufacturing joint venture for 1.08 trillion won (USD 940 million).<br /><br /></p>.<p>The joint-venture was established in 2004, when the global economy witnessed a growth in demand for consumer electronics. However, the LCD panel and TV market conditions have changed since then.<br /><br />"In order to respond to such challenging conditions and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance," Sony and Samsung said in a joint statement.<br /><br />"Under the agreement, Samsung will acquire all of Sony's shares of S-LCD Corporation, the two companies' LCD ((liquid crystal display) panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung," they said.<br /><br />The share transfer and payments are expected to close by the end of January 2012, subject to necessary approvals from regulatory authorities.<br /><br />The transaction will enable Japanese electronic giant Sony to monetise its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility.<br /><br />The agreement would allow Samsung and Sony to continue cooperative engineering efforts focused on LCD panel technology.<br /><br />Samsung expects that the whole ownership of S-LCD will provide it increased flexibility, speed and efficiency in both panel production and business operations.</p>