Corning Inc. has entered into an agreement to take over full ownership of Samsung Corning Precision Materials Co. Ltd. (SCP), an unconsolidated equity venture with Samsung Display that manufactures LCD glass in Korea. Samsung Display currently owns 43 percent of SCP.
The Samsung Display subsidiary of Samsung Electronics Co. Ltd. will have a 7.4 percent share in Corning, the maker of Gorilla Glass, which is used in LCD panels for tablets, televisions and smart phones.
The deal includes a new 10-year LCD display glass supply agreement between Corning and Samsung Display that will add about $2 billion to Corning’s annual sales.
The transactions are part of a new set of agreements between Corning and Samsung Display intended to strengthen product and technology collaborations between the two companies. Corning expects the transactions to close in the first quarter of 2014.
The series of transactions will result, in part, in Samsung Display investing an additional $400 million in Corning, and Corning buying out other shareholders’ minority interests in SCP.
Corning’s board of directors has authorized an additional $2 billion of share repurchases through Dec. 31, 2015, dependent upon the transaction closing.
“We are excited to enter this new era of collaboration in our 40-year equity relationship with Samsung, one of the world leaders in consumer electronics,” said Wendell P. Weeks, Corning's chairman, chief executive officer and president.
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 organization will be integrated into Corning’s Display Technologies segment.
After the transactions, Corning will be able to service all specialty glass customers in all regions directly utilizing its manufacturing facilities throughout Asia.