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Samsung acquires 7.4% stake in Corning

Posted: 25 Oct 2013     Print Version  Bookmark and Share

Keywords:Samsung  Corning  strategic partnership  LCD glass  Gorilla Glass 

Corning Inc, the Gorilla glass maker, has taken full control of Samsung Corning Precision Materials Co. Ltd, a South Korea-based manufacturer of LCD glass for flat panel displays. The joint venture, formed in 1995, was 43 per cent owned by Samsung.

In exchange, Samsung will get Rs.11,949.69 crore ($1.9 billion) worth of preferred shares in Corning, which if converted, would give it a 7.4 per cent stake.

The companies have also signed a 10-year LCD display glass agreement. It also emphasizes the two companies' technology collaborations on strategic product development and commercialisation initiatives.

These agreements will allow Corning to extend its leadership in speciality glass and drive earnings growth. Corning expects the transactions to close in 1Q14.

"Our new long-term supply agreement will provide Corning steady demand in the global LCD market. By leveraging SCP's fusion-based manufacturing assets, we will further extend our leadership in advanced glass. This affords us greater flexibility in servicing customers, managing capacity, and minimising capital spending as we expand production of Corning Gorilla Glass and pursue new speciality glass applications," Wendell P. Weeks, chair, CEO and president, Corning, stated.

Corning has LCD glass manufacturing operations in the United States, Japan, Taiwan and China. Samsung Corning Precision Materials has LCD glass manufacturing facilities in Korea. Following completion of the transaction, the SCP organisation will be integrated into Corning's Display Technologies segment. Corning will be able to service all speciality glass customers in all regions directly, utilising its manufacturing facilities throughout Asia. U.S. Corsam Technologies LLC, and Samsung Corning Advanced Glass LLC, both equity affiliates established between Corning and Samsung Display, will continue under their current agreements.

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