Toshiba to buy all Panasonic shares in LCD panel joint venture

Panasonic has agreed to sell its entire stake in "Toshiba Matsushita Display Technology Co., Ltd" (TMD) to Toshiba. Effective Apr 28 09, once the deal is completed, "Toshiba Matsushita Display Technology Co., Ltd" will change its name to "Toshiba Mobile Display Co., Ltd."

TMD started in 2002 to make small- and medium-sized LCD panels for applications like cell phones, laptops, and in-vehicle displays.

Toshiba says, this company is now facing a very tough business environment: weak demand that is sharply down from last year, and continuous price erosion in small- and medium-sized LCD panels. In these circumstances, and as part of the Action Programs to improve profitability announced by Toshiba this January, TMD is now implementing restructuring initiatives in its LCD business, including closing certain manufacturing lines.
Toshiba plan to go for comprehensive restructuring of TMD's business and to give more push to Organic LEDs.