Samsung, LG Speeding Up M&A Moves
Affiliates of Samsung and LG Group have been speeding up their M&A moves as part of their efforts to beef up competitiveness.
Industry analysts have interpreted the change of business structures via mergers and acquisitions between flagship companies and unprofitable lines to survive the challenges in the market.
On Monday, Samsung Corning Precision Glass, South Korea’s largest supplier of glass for liquid crystal display (LCD) panels, decided to take over Samsung Corning, a local manufacturer of producing outdated cathode-ray tubes (CRT) glass.
``We will close the local lines to produce CRT TVs and the agreement will make room for us to expand into high-end sectors such as filters for plasma display panels and other flat-panel-related materials,’’ an official from Samsung Corning said.
Samsung SDI, a global maker of pricey panels using OLED technology, is also considering selling its 132,000 square meter property at its plant in Suwon, Gyeonggi Province, to Samsung Electronics to secure more funds to invest in the promising OLED sector.
Samsung Electronics’ digital camera unit, Samsung Techwin, has joined the move by strengthening ties with Samsung Electronics in the digital camera business.
LG Electronics, which is accelerating its move to hand over its AM OLED business to LG.Philips LCD ― a South Korean joint venture with Dutch company Philips, has unveiled a swap plan with LG Micron to increase its productivity in plasma panel business.
``Through the deal, we hope to reinforce price competitiveness in the fiercely competitive market,’’ an LG official said.
``Such drives seem inevitable as they are seen as part of an aggressive tactic by the conglomerates to beat competitors,’’ the official added.
source
Industry analysts have interpreted the change of business structures via mergers and acquisitions between flagship companies and unprofitable lines to survive the challenges in the market.
On Monday, Samsung Corning Precision Glass, South Korea’s largest supplier of glass for liquid crystal display (LCD) panels, decided to take over Samsung Corning, a local manufacturer of producing outdated cathode-ray tubes (CRT) glass.
``We will close the local lines to produce CRT TVs and the agreement will make room for us to expand into high-end sectors such as filters for plasma display panels and other flat-panel-related materials,’’ an official from Samsung Corning said.
Samsung SDI, a global maker of pricey panels using OLED technology, is also considering selling its 132,000 square meter property at its plant in Suwon, Gyeonggi Province, to Samsung Electronics to secure more funds to invest in the promising OLED sector.
Samsung Electronics’ digital camera unit, Samsung Techwin, has joined the move by strengthening ties with Samsung Electronics in the digital camera business.
LG Electronics, which is accelerating its move to hand over its AM OLED business to LG.Philips LCD ― a South Korean joint venture with Dutch company Philips, has unveiled a swap plan with LG Micron to increase its productivity in plasma panel business.
``Through the deal, we hope to reinforce price competitiveness in the fiercely competitive market,’’ an LG official said.
``Such drives seem inevitable as they are seen as part of an aggressive tactic by the conglomerates to beat competitors,’’ the official added.
source
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