On February 27 a formal contract between Canon and Hitachi was announced. Based on the agreement, Canon will acquire 24.9% shares of Hitachi Displays, which is a wholly-owned subsidiary of Hitachi. Hitachi Displays manufacture small/medium LCD panels. The 24.9% equity acquisition will be completed by March 31, 2008 and will be valued around JPY43.2B. Canon is also planning to acquire the shares of current shareholders Hitachi and Matsushita. When that is complete, Canon will then make Hitachi Displays a Canon subsidiary.
Canon is at the top of its game in the camera market and most of its cameras require an LCD. Having complete control over Hitachi Displays that manufacture small/medium LCDs would allow Canon to be more vertically integrated, hopefully leading to more innovation and lower cost of manufacturing.
[tags]Canon, Hitachi, Hitachi Displays, Matsushita, Display Manufacturer[/tags]