Samsung Electronics has acquired a 7.4 percent share in smartphone Gorilla Glass maker Corning that translates to about $1.9 billion worth of preferred shares in Corning. This will see a 10 year deal worth of display supply to the Korean Giant by the glass giant till 2023.The new deal is expected to add around $2 billion to Cornings annual sales as Reuters explains in this statement.
“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.”
This move is one that will make the competitors raise an eyebrow since the Korean giant already supplies them with LCD displays and other components. The Gorilla Glass is mostly used by high-end smartphones and tablets, including those made by Samsung, Apple, HTC and Motorola.
To have a full Press release statement regarding the new Corning and Samsung partnership together with the Share purchase click here.