Shulou(Shulou.com)12/24 Report--

CTOnews.com, November 30, according to Dealsite, Samsung is seeking to acquire LG Display Guangzhou LCD factory indirectly through Huaxing Optoelectronics. According to reports, the South Korean company currently holds a 10.38% stake in Huaxing Optoelectronics.

It is said that BOE also appears to be trying to buy LG Display's Guangzhou plant, which is one of the reasons Samsung wants to control LGD's Guangzhou plant.

▲ LG Display Guangzhou Factory, Picyuan: LG Display reported that LG Display had negotiated the sale of the Guangzhou LCD plant with Chinese home appliance company Skyworth for more than six months, but failed. Sources point out that the two companies failed to agree on funding, mainly because Skyworth failed to respond to an one-time payment from LG Display, a factory worth up to 1 trillion won (CTOnews.com Note: about 5.52 billion yuan).

Sources said that after the collapse of negotiations with Skyworth, Huaxing Optoelectronics and BOE expressed a positive attitude towards the acquisition. The market expects that as Huaxing Optoelectronics is an ally of Samsung, Samsung Electronics will strongly support the acquisition.

As Samsung shows that it has long been out of the LCD business, the Korean LCD market is basically dominated by Chinese manufacturers, so even Samsung Electronics needs to purchase from Chinese manufacturers such as BOE.

From Samsung Electronics's point of view, if Huaxing Optoelectronics can acquire the LG Display plant in Guangzhou, they will be in a better position to negotiate with other manufacturers on price and quality.

According to public data, the production line of LGD Guangzhou factory is composed of GP1 and GP2, with a production capacity of 100,000 and 200,000 tablets, respectively, totaling 300000 tablets. At present, the main customers of LGD Guangzhou factory are Samsung Electronics, LG Electronics, Sony and other large global enterprises.

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