Sharp to take over NEC Display for global expansion
TOKYO, NNA - Sharp Corp. has agreed to take over a Japanese peer NEC Display Solutions Ltd. to extend its reach beyond Japan into overseas markets for public displays and professional projectors.
Sharp, a subsidiary of Hon Hai Precision Industry Co., the world’s largest consumer electronics contract maker, is acquiring a 66 percent stake in NEC Display Solutions, a subsidiary of NEC Corp., for 9.24 billion yen ($84.3 million) on July 1, the buyer and the object of the acquisition said in separate statements on Wednesday.
Sharp is considering the purchase of the remaining 34 percent of the planned subsidiary and changing the name of the unit in the future, a Sharp spokesman told NNA on Thursday.
The deal allows Sharp, which currently focuses on the Japanese market for public displays, professional projectors, and electronic whiteboards in the field, to expand into Europe and North America, where NEC Display Solutions is strong.
The partnership makes “both parties mutually complementary, and various synergy effects are expected,” Sharp said in the statement. It expects to sell its own products through NEC Display Solutions’ sales networks in Europe and the United States, the Sharp spokesman added.
The deal would bring a combined global market share of public displays by the two companies to 8 percent, the third-place following 10 percent for LG Display Co. and 28 percent for Samsung Electronics Co., according to the spokesman, citing an outside research report.
NEC Display Solutions made a net loss of 317 million yen for the fiscal year to March 2019, a reverse from a profit of about 2.8 billion yen a year ago, on top of revenue of about 63.2 billion yen, down from about 72 billion yen, Sharp said in the statement.