The Financial Times reports Samsung is buying a 3% stake in Sharp for a sum of about $107million (Y10billion). Sharp supplies Samsung with panels for 32inch TV and as a part of the agreement Sharp will also supply Samsung with with state-of-the-art, large-sized LCD panels for TVs and small and medium-sized panels for smartphones and notebook PCs.
Though a small investment considering Samsung’s $22billion cash pile, Sharp has been struggling for years and analyst see this move as a small step towards Samsung’s eventual acquisition of Sharp. By acquiring Sharp, Samsung will not need to invest in building factories for manufacturing panels.
It is important to note that Samsung is a Korean Company while Sharp is Japanese. Who would have thought a Korean company will be buying a Japanese company of the like of Sharp decades ago. Will we see Hyundai someday buying into Honda??