News Releases | Archive 2008
February 27, 2008
Conclusion of Formal Contract Between Hitachi and Canon Related to Comprehensive LCD Panel Business Alliance
TOKYO, February 27, 2008Hitachi, Ltd. (NYSE: HIT / TSE: 6501, "Hitachi") and Canon Inc. (NYSE: CAJ / TSE: 7751, "Canon") today announced the conclusion of a formal contract related to a comprehensive liquid crystal display (LCD) panel business alliance. This follows the signing of a basic agreement among Hitachi, Canon and Matsushita Electric Industrial Co., Ltd. (NYSE: MC / TSE: 6752, "Matsushita") regarding this alliance on December 25, 2007. Hitachi and Matsushita announced a formal contract on February 15 concerning the same comprehensive alliance.
Under the terms of this agreement, Canon will acquire a 24.9% stake in Hitachi Displays, Ltd. ("Hitachi Displays"), a wholly owned Hitachi subsidiary that makes small and medium-sized LCD panels, from Hitachi by March 31, 2008, for approximately 43.2 billion yen, pending regulatory approval. The acquisition price was agreed upon based on an evaluation of Hitachi Displays' value, including a 50% shareholders' equity stake in IPS Alpha Technology, Ltd. owned by Hitachi Displays. As the next step, Canon plans to acquire*1 Hitachi Displays' shares owned by Hitachi and Matsushita*2 and to make Hitachi Displays a Canon subsidiary. Meanwhile, Hitachi will consider the continued holding of up to 10% of Hitachi Displays' shares.
- Under the formal contract signed between Hitachi and Matsushita on February 15, 2008, Matsushita will acquire a 24.9% stake in Hitachi Displays from Hitachi by March 31, 2008, pending regulatory approval.
- Hitachi and Matsushita have agreed that Matsushita's planned 24.9% stake in Hitachi Displays to be owned by Matsushita will be transferred to Hitachi or a third party including Canon in the future.
1.Outline of Hitachi Displays
- 1)Company name
- Hitachi Displays, Ltd.
- Yoshiyuki Imoto
- Kanda Neribei-cho 3, Chiyoda-ku, Tokyo, Japan
- October 1, 2002
- 5)Main businesses
- Design, manufacture, and sales of small and medium-sized LCD panels and related products, as well as maintenance and services
- 6)Fiscal year-end
- March 31
- 7)No. of employees
- 11,974 (as of March 31, 2007, Consolidated)
- 35,274.5 million yen
- Hitachi 100%
- 200.3 billion yen (FY 2006, Consolidated)
2.Effect on business results
Hitachi is currently analyzing the likely impact on its earnings and will make an announcement when details are available.
There will be no material impact on Canon's earnings in the fiscal year ending December 31, 2008.