The Board of Directors of Samsung Electronics has announced its decision to seek a merger with Samsung LED Ltd, the Korea-based company's LED manufacturing subsidiary. The merger is expected to open global sales channels to the LED business and perhaps widen the company’s access to the lighting market.
The purpose of the merger is, says Samsung, "to nurture the LED business as Samsung Electronics’ future growth engine" by utilizing its advanced technology, manufacturing competency, and global sales network.
The merger deal is expected to be signed on January 20, 2012 and then go into effect from April 1, 2012 after receiving approval at Samsung Electronics’ and Samsung LED’s Board of Directors meetings.
Strategies Unlimited told LEDs Magazine that Samsung’s LED sales for Q1-Q3 2011 were down 15% year-over-year. Preliminary numbers for Q4 indicate weak sales relative to 2010 due to low capacity utilization (around 50%).
