Hitachi, Sony, Toshiba plan LCD biz merger

Japan's Hitachi Ltd plans to merge the 

Sony and Toshiba were already in consultation with the Innovation Network Corp. of Japan (INCJ) to merge their LCD operations, the report stated.

Hitachi had been negotiating the sale of a majority stake in its small-LCD business to contract electronics manufacturer Hon Hai Precision Industry of Taiwan, otherwise known as Foxconn, according to a Financial Times report. INCJ's willingness to contribute more than a billion dollars in Japanese LCD manufacturing may explain Hitachi's desire to get involved in a Japanese joint venture.

If the agreement pushes through, which is expected to be finalized by July according to Reuters, the INCJ may double its previous investment plan and provide about Rs.11,160.71 crore ($2.5 billion). This represents a 70 per cent stake in the super-company, with Hitachi, Sony and Toshiba dividing the remaining 30 per cent among them.

The move is seen as an attempt to prevent mistakes with regard to