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Home News & Events M&A LAW NEWS: Emerging Merger for Sony, Toshiba and Hitachi

M&A LAW NEWS: Emerging Merger for Sony, Toshiba and Hitachi

Friday, 09 September 2011 22:03

Japanese electonic giant companies Sony,Toshiba and Hitachi have announced that in the second quarter of next year they intend to merge their small and medium-sized liquid crystal display businesses for the smartphones and the tablet computers with the aim to become more competitive on the world market. The new company to run the show shall trade under the name 'Japan Display' and it will be 70 per centum financed by the Innovation Network Corporation, a private-public investment fund established in 2009 precisely with the object to assist and to support next-generation businesses.

It is a well known fact that since the introduction of the iPad product by US Apple Inc, the tablet computer market has experienced an ever increasing growing market.

It is deemed that 'Japan Display' shall be able to provide rival competitors such a Samsung, Chimel Immolux and Sharp with a tough challenge. Indeed, Sony's CEO & President Mr Howard Stringer is quoted to have said that "I am confident that the new company will become a driving force for technological innvovation and new growth in the rapidly expanding small- and medium-sized display market."

Market analysts estimate that 'Japan Display' stands a good chance to secure some 20 per centum of the relevant market. Giant electronic company Sharp currently enjoys some 15 per centum of the highly competitive global market share.