LG Display scraps sale of Nanjing automotive LCD module business
LG Display terminates $68.9M sale of Nanjing automotive LCD business to Top Run Total Solution.
LG Display terminated its deal to sell its automotive LCD module business in Nanjing, China, to Top Run Total Solution after the two sides failed to reach a final agreement on deal conditions. The transaction, valued at RMB 491.5 million ($68.9 million), was called off by mutual agreement with no penalty fees, per TechNode.
The sale had been scheduled to close on July 30 but was already delayed to September 30 before being terminated. LG Display had planned to outsource production after the transfer to improve operating efficiency and profitability. Top Run said the contract termination came by mutual agreement, with no additional financial burden to either party, according to a report in E-Daily.
The deal's collapse marks a setback for LG Display's strategy to restructure its automotive display operations in China. The company had sought to divest the Nanjing facility as part of efforts to streamline its display business amid shifting market conditions and competition in the automotive LCD segment.
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