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Business deals

LG Chem in $1.1bn LCD polarizer sale deal with China's Shanshan

South Korean company plans to focus on strengthening its OLED business

LG Electronics displays flexible OLED panels in the 2020 CES in Las Vegas: LG Chem has signed a conditional contract with China's Ningbo Shanshan to sell most of its LCD polarizer business and will focus on strengthening OLED competitiveness.   © Reuters

SEOUL (Reuters) -- South Korea's LG Chem Ltd. said on Wednesday it has signed a conditional contract with China's Ningbo Shanshan Co., Ltd. to sell most of its liquid crystal display polarizer business for $1.1 billion.

The chemicals and battery maker said some of its LCD polarizer business including those for automobiles would be excluded from the sale. Polarizers improve display function in products.

"We are going to focus on strengthening our competitiveness in tech materials, especially organic light-emitting diode (OLED) and nurture our OLED polarizer business," LG Chem said in a statement.

The company said the deal is pending approval from its board of directors, and the terms are subject to change. It said it plans to make another announcement once the deal is finalized. Ningbo Shanshan said on Tuesday it plans to raise up to 3.1 billion yuan ($438 million) in a share placement to fund acquisition of a majority interest in LG Chem's LCD polarizer business in China, Taiwan and South Korea.

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