BOE Technology has reached a deal to acquire majority stakes in two advanced LCD fabs owned by CEC-Panda LCD Technology in Nanjing and Chengdu respectively for a total of CNY12.117 billion (US$1.78 billion) , making it the largest ever acquisition in China's display industry.
Under the deal, BOE will take up an 80.831% stake in CEC Panda's 8.5G fab in Nanjing for CNY5.559 billion and a 51% stake in CEC Panda's 8.6G fab in Chengdu for CNY6.526 billion.
Upon the completion of the deal, BOE will have a total of five 8.5G fabs, one 8.6G line and two 10.5G fabs.
The acquisition would also boost BOE's share in the global large-size LCD panel market to 28.9% by 2022, making it the dominant supplier in the segment compared to 16% for second-place China Star Optoelectronics Technology (COST), according to Sigmaintell Consulting.
CEC-Panda's 8.6G line in Chengdu, which can roll out LCD panels mainly in 50-, 58- and 70-inch sizes, will enrich BOE's product portfolios and also form a cluster with BOE's LCD plants in Chengdu, Chongqing and Mianyang for boosting synergy, BOE said in a statement announcing the deal.
Other industry sources pointed out that BOE will also have access to IGZO (indium gallium zinc oxide) and VA (vertical alignment) LCD technologies and strengthen its leadership in IT and TV panel segments.
BOE currently utilize IPS technology for production of TV and IT panels, while CEC-Panda uses IGZO and VA technologies for TV applications, the sources noted.
Article translated by Steve Shen
