Hitachi, Matsushita detail LCD panel alliance

Matsushita will acquire a 24.9% stake in Hitachi Displays, a wholly owned Hitachi subsidiary that makes small and medium-sized LCD panels.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 2/18/2008

Hitachi Ltd and Matsushita Electric Industrial Co Ltd  have detailed the LCD panel business alliance they first announced in December 2007.

Under the recently released terms of this agreement, Matsushita will acquire a 24.9% stake in Hitachi Displays Ltd, a wholly owned Hitachi subsidiary that makes small and medium-sized LCD panels, from Hitachi by March 31.

As the next step going forward, Matsushita will acquire for approximately $612 million (66 billion yen) the in-plane switching (IPS) LCD panel-related businesses, including the total issued shares of IPS Alpha Technology, owned by Hitachi Displays. Meanwhile, Hitachi said it will consider holding the IPS Alpha’s share up to 10%. IPS Alpha designs, manufactures, and sells large-sized LCD panels for TVs.

Until the deal is executed, Hitachi Displays will retain majority ownership of IPS Alpha. However, the companies noted that under US accounting standards IPS Alpha will become a Matsushita consolidated subsidiary as of March 31.

Hitachi said it and Canon, which also announced its part in the LCD business alliance in December, are currently working to finalize a formal contract, as well.