According to Nihon Keizai Shimbun reported on March 25, Hon Hai's Sharp will acquire the display unit of NEC, and the acquisition is expected to be completed this summer.
It is understood that Sharp acquired approximately two-thirds of the shares of NEC Display, and the acquisition is expected to cost a total of 10 billion yen (about 635 million yuan). After reviewing procedures by Japanese antitrust agencies, it is estimated that NEC Display will It was formally incorporated into Sharp this summer.
NEC displays are one of the sub-brands of NEC Corporation (NEC). The parent company NEC was founded in 1899 and has a history of more than 100 years. For many years, NEC has been ranked among the top 100 in the world's top 500. Its business scope is mainly divided into three parts: IT solutions, network solutions and electronic equipment. The electronic equipment includes semiconductors, displays, and other electronic devices.
Nikkei pointed out that NEC's profitable projects are mainly in IT services and network solutions. NEC hopes to gradually divest and sell hardware businesses such as computers in stages. In the process, it is not the same as Sharp ’s idea of expanding the display business. Together, Sharp will maintain the NEC brand's continued operations in the future.
In terms of products, NEC's main products are LCD liquid crystal displays and commercial projectors. Consolidated revenue in 2018 reached 97.3 billion yen (approximately RMB 6.177 billion), which is more than twice the size of Sharp's similar business. About 90% of the company's revenue comes from foreign markets such as Europe and the United States, which can complement each other with Sharp, mainly the Japanese market.
According to British Omdia survey data, if Sharp and NEC are added to the global market share of commercial displays in 2019, it will rank third in the world with a market share of 9%, second only to 27% of Samsung Electronics and LG of South Korea. 12% of electrons.
Sharp has a panel factory in Japan and an assembly plant for displays in China. Coupled with the strong backing of the Hon Hai Group, if the NEC display is successfully acquired in the future, it can also look forward to the expansion of related revenue and improve production efficiency.
It is reported that the shares of Sharp and NEC have also risen this morning. As of the close of noon, Sharp's share price has risen 11.98%, and NEC's share price has risen 6.6%.
