NEC and Sharp Joint Venture Delayed

Adrian J Cotterill, Editor-in-Chief

So we now know that Sharp Corporation (Sharp, TSE: 6753)’s acquisition of NEC Display Solutions will result in a new company called ‘Sharp NEC Display Solutions’ and that due to #COVID19 the completion of the ‘Joint Venture’ announced back in March 2020 will be delayed for at least another two to four months.

Under the terms of the transaction, NEC will transfer 66% ownership of NEC Display Solutions, Ltd. to Sharp, and retain a 34% equity stake in the business.

The joint venture will continue to provide NEC branded products. NEC will also continue to sell the joint venture’s products and solutions to its customers around the world.

Dear valued customer and partner,

On March 25, 2020, we shared the exciting news about the planned joint venture combining NEC Display Solutions, Ltd. (NDS), a subsidiary of NEC Corporation, with Sharp Corporation. Due to unforeseen delays from COVID-19 and the global pandemic, NEC and Sharp have mutually agreed to delay the launch date of the planned joint venture.

First announced in March, the completion of the transaction was originally planned for July 1, 2020. However, as a result of the global COVID-19 pandemic, regulatory approvals remain outstanding. Both companies are moving towards completion of those approvals, but uncontrollable variables have the finalization of the joint venture. The transaction is now expected to be concluded in two to four months from the original July 1, 2020 date.

The Sharp and NEC joint venture, to be called Sharp NEC Display Solutions, will be mutually complimentary and will allow both companies to build upon their strengths and address the visualization needs of their global customers. Both companies remain committed to the strategic rationale for the proposed joint venture and will provide further updates in due course. In the meantime, it remains business as usual for both Sharp and NEC Display Solutions.

Sincerely yours,

Bernd Eberhardt
President & CEO
NEC Display Solutions Europe GmbH
Todd Bouman
President & CEO
NEC Display Solutions Americas
Hisatsugu Nakatani
President
NEC Display Solutions, Ltd.


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