Samsung Display and Corning Incorporated have entered in a series of strategic agreements that will benefit both companies in the long run. Under the deal, Corning will acquire full stake of Samsung Corning Precision Materials Co., Ltd. (SCP), a joint venture between Samsung Display and Corning in which Samsung owns 43% stake. SCP makes LCD screens in South Korea.
Instead of paying in cash, Corning will pay for SCP with convertible preferred shares valued at $1.9 billion. In addition, Samsung will put in extra $400 million that will give it some 7.4% ownership in Corning.
Both companies have also signed a new long-term LCD display glass supply agreement that will last through 2023.
Commenting on the news, Kinam Kim, president and CEO of Samsung Display said: “We are pleased to have an opportunity to strengthen the strategic ties between our two companies. We look forward to concentrating our efforts and combining our expertise in product development with Corning’s renowned leadership in glass technologies to develop new market opportunities in consumer products and other industries.”