Samsung has today announced that they will be acquiring 7.4 percent of the Gorilla Glass manufacture Corning. Priced at 2.3 billion, the deal is said to have been done in order to strengthen Samsung’s and Corning’s strategic collaborations.
Due to the acquisition, shares of Corning have now jumped to 28 percent, whilst Samsung SDI shares have seen a drop by 8 percent.However this now means that Samsung Electronics Co Ltd is now the largest shareholder of Corning Inc.
The deal will also extend Samsung’s LCD glass supply deal for a further 10 years, something that is expected to add $2 billion to Corning’s annual sales, which Reuters explained with the following statement:
“As part of the agreement, Samsung Display will receive new convertible preferred shares in Corning worth $1.9 billion, and will invest another $400 million by subscribing to new convertible preferred shares. If the preferred shares are converted, Samsung Display would become the U.S. firm’s biggest shareholder, with a 7.4 percent stake.”
Source: Reuters : Engadget : Corning