Samsung acquires 7.4 percent share in Gorilla Glass maker Corning

Corning buys out Samsung's stake in LCD joint venture; ten-year supply deal inked

Samsung has acquired a 7.4 percent share in smartphone Gorilla Glass maker Corning, as part of a "strengthening" in the partnership between the two companies. The deal will also see Corning taking full control ofSamsung Corning Precision Materials, an LCD panel joint venture in which Samsung currently holds a 43 percent stake. Samsung will make an additional investment of $400 million in Corningby subscribing to new convertible preferred shares, today's press release states.

In return, Samsung will get $1.9 billion worth of convertible preferred shares in Corning, equal to a 7.4 percent stake in the company. At the same time a ten-year new supply agreement between the two has been inked, adding around $2 billion to Corning's annual sales.

Corning's Gorilla Glass is used in many high-end mobile devices, including those of Samsung's competitors and today's news may be of concern to the company's smartphone rivals, many of whom are already reliant on Samsung for other components.

Source: Corning; via: Engadget

Via: Samsung acquires 7.4 percent share in Gorilla Glass maker Corning