It has been announced today that Samsung and Corning have strengthen their strategic collaborations, with Samsung Display Co acquiring 7.4 percent of the Gorilla Glass manufacturer Corning. Which cost Samsung a cool £2.3 billion making the shares of Corning jump 28 percent and Samsung SDI shares to drop 8 percent.
The move makes Samsung Electronics Co Ltd the largest shareholder of Corning Inc. who are responsible for making the awesome and very strong Gorilla Glass which is used in many mobile phones, smartphones and tablets.
The New Samsung/Corning deal includes a new 10 year LCD glass supply deal with Samsung who already supplies LCD panels to Apple, Sony Corp and Lenovo Group to build their tablets and smartphones. The new deal is expected to add around $2 billion to Cornings annual sales. Reuters explains:
“As part of the agreement, Samsung Display will receive new convertible preferred shares in Corning worth $1.9 billion, and will invest another $400 million by subscribing to new convertible preferred shares. If the preferred shares are converted, Samsung Display would become the U.S. firm’s biggest shareholder, with a 7.4 percent stake.”
For more information on the new Samsung and Corning partnership and share purchase jump over to the Corning press release website for details.