Proposed Merger among Chinese LCD Panel Makers Fails to Materialize
January 04, 2008
The proposed merger among three Chinese LCD (Liquid Crystal Display) panel makers - BOE, SVA, and IVO - is reported to have disintegrated after more than a year of negotiations, according to Taiwan's Commercial Times.
The three companies signed at year-end 2006 a memorandum of understanding to establish a merger, as reported in an Asia Express dated December 29, 2006. Original plans include the consolidation of production lines and the formation of a new joint venture located in Shanghai. Furthermore, the three companies had initially planned to reach an agreement by June 30, 2007 - which, however, was postponed to September and eventually did not take place.
According to statements made by BOE and SVA on December 29, 2007, the merger talks fell through due to existing technical obstacles. Both companies did not elaborate on further details, though.