Acquisition of Sharp NEC's display business Compete with Koreans March 25 16:03
Sharp has decided to acquire NEC's business, which handles electronic signage displays used for advertising and other purposes. We plan to strengthen our overseas expansion to compete with the leading Koreans in this field.
According to the announcement, Sharp will acquire two-thirds of the shares of NEC Display Solutions, a subsidiary of NEC, for over ¥ 9.2 billion, making it a subsidiary.
The acquisition of the shares is scheduled for July 1st, and the remaining one-third will be held by NEC, and the company will be operated as a joint venture.
NEC's display business mainly deals with large displays for electronic signage used in advertising, and has strengths in the US and European markets.
Sharp, meanwhile, is developing its business in this field, mainly in Japan, and the acquisition aims to strengthen its overseas business.
In addition, the two companies intend to consider the development of products that combine the high-speed, large-capacity communication standard 5G with high-definition 8K image quality by utilizing the technologies of both companies.
In this field, Samsung Electronics and LG Electronics of South Korea are leading, and it is attracting attention whether the acquisition can enhance their presence in overseas markets.