Toshiba announced it will acquire Panasonic's 40 percent stake in Toshiba Matsushita Display Technology Co., an unprofitable LCD joint venture, for about two billion yen (approx. $20 million). The deal is expected to go through on April 28, and the company's name will be changed to Toshiba Mobile Display Co:
The companies said Toshiba will acquire Panasonic's shares on April 28 and then change the business's name to Toshiba Mobile Display Co. By making the company a wholly owned subsidiary of Toshiba, the business can implement restructuring measures more quickly, Toshiba said.
The venture, currently known as Toshiba Matsushita Display Technology Co., is the second-largest manufacturer of small and medium-size LCD screens, with a 10% market share, according to research firm DisplaySearch. Sharp Corp. is the market leader with a 20% share.
Struggling with falling prices of LCD screens and weak demand, the venture expects to post a loss of 30 billion yen on sales of 270 billion yen in its fiscal year ended March 31.