Samsung Electronics and Samsung LED confirm merger
Samsung Electronics and Samsung LED have confirmed they are to merge.
After using negotiation techniques, Samsung Electronics' board of directors has today (February 20th) approved a merger between their organisation and Samsung LED.
This will involve the LED company undergoing a small-scale merger, which will result in its dissolution and it becoming part of the Electronics body.
Shares will be exchanged in a ratio of 0.0134934 Electronics shares in exchange for each LED share and the move is expected to nurture the Samsung Electronic brand's future growth by taking advantage of its international sales network, manufacturing expertise and advanced technological capabilities.
The board of directors had previously proposed a merger of these two businesses on December 26th 2011 and they will combine on April 1st 2012.
Samsung Electronics has also today approved a spin-off of its LCD company, noting market trends indicate OLED panels will soon overtake LCD displays.
Initially, the LCD business will become a new enterprise, before considering other restructuring measures such as a merger with S-LCD Corporation or Samsung Mobile Display.
Posted by Ron Maverick
Source: Samsung press releases, February 20th