Dutch firm Philips and South Korean firm LG Electronics have signed a letter of intent to merge their cathode ray tube (CRT) businesses into a new joint venture company. The transaction is scheduled f…
Dutch firm Philips and South Korean firm LG Electronics have signed a letter of intent to merge their cathode ray tube (CRT) businesses into a new joint venture company. The transaction is scheduled for completion in the first half of 2001. Upon completion, LG Electronics will receive US$ 1.1 billion from the newly-created company to cover the difference in valuation. The 50-50 display technology joint venture concerns all CRT activities, and key components. Both companies have agreed to include their glass activities in the final agreement, and also aim to include their plasma technology. The new company expects annual sales of nearly US$ 6 billion and will have a total workforce of approximately 36,000. The new company“s registered office will be in the Netherlands, with operational headquarters in Hong Kong. Philippe Combes, currently CEO of Philips Display Components, will take charge of the joint venture.