Jun 15, 2001 President and Chief Executive Officer of Royal Philips Electronics
(AEX: PHI, NYSE: PHG) and John Koo, Vice Chairman and CEO of LG
Electronics (LG � KS 02610) signed a Definitive Agreement, through
which the two companies will merge their respective cathode ray tube
(CRT) businesses into a new joint venture company. The official
presentation of the new company will be on July 5, in Hong Kong.
The 50-50 joint venture in display technology concerns all CRT
activities including glass, and key components. With expected annual
sales of nearly US$ 6 billion and approximately 36,000 employees, the
new company will have a global leadership position in the CRT
market.
Complementary Strengths and Synergy Potential
The merged entity is projected to benefit from the highly
complementary strengths of the two companies:
- Philips' leadership in television tubes, and LG's leadership in
monitor tubes;
- LG's geographical leadership in Asia, and Philips' strength in
Europe, China, and the Americas;
- LG's industrial and manufacturing expertise and Philips' global
marketing and technological innovation.
Further benefits are expected in the areas of purchasing and research
& development.
Under the terms of the agreement, LG and Philips will share equal
control of the joint venture. The new company will be legally
established in the Netherlands, with operational headquarters in Hong
Kong. Philippe Combes, currently CEO of Philips Display Components,
will lead the joint venture.
For further information:
Philips Corporate Communications, Andre Manning Tel: +31 20 5977199
LG Electronics Communications, Sangbae Park, Tel: +82 2 3777-3635
