AUO 2 billion 200 million acquisition of Guihui electronic challenge Samsung and LG

On April 8th news, according to foreign reports, in order to compete with Samsung and PHILPS LG, the world's third largest LCD manufacturer, Taiwan area Chinese AU Optronics (AU Optronics) announced on Friday that it would buy $2 billion 200 million worth of stock Guihui electronic (Quanta Display).

According to Bloomberg, the stock exchange will AUO Guihui electronic 3.5 shares, calculated according to Friday's closing price, the equivalent of AUO for NT $71 billion 700 million ($2 billion 200 million) acquisition of Guihui electronic. After the merger, AU Optronics will occupy 17% market share of the global LCD. The current market share of Samsung and LG- PHILPS are 19%.

It is reported that this is since 2002, Fubon Financial Holding for NT $80 billion 300 million acquisition of the Bank of Taipei, Taiwan China market the biggest deal. At the same time, it is also the largest ever since the acquisition of Hynix semiconductor industry in 2003.

After the completion of the transaction, Guihui electronic electronics will become the second largest shareholder of AU Optronics, with 6% of the shares. And AU Optronics the largest shareholder of BenQ, holding 9%. BenQ CEO (KY Lee) Yao Li? Will continue to serve as chairman of the AU Optronics, Guihui electronic vice chairman Liang Tsu-chen will serve as vice chairman of auo. Liang said that after the merger of the two companies will not be layoffs.

"The merger is good news for the industry," says Jae, an analyst at Lee, a South Korea Institute of big research. At the same time, the deal also helps to stimulate the restructuring of the industry."