Hitachi, Ltd., Canon Inc., and Matsushita Electric Industrial Co., Ltd. reached a basic agreement on a comprehensive alliance aimed at reinforcing and growing the liquid crystal display ("LCD") panel businesses and technologies. Under the alliance, the three companies will merge their strengths to accelerate the development of display technologies and expand their scope of application.
In addition, the Canon and Matsushita will, by transfer of shares from Hitachi, each acquire 24.9% of the shares of Hitachi Displays Co., Ltd., a wholly owned subsidiary of Hitachi engaged in small- and medium-sized LCD panel-related businesses, by March 31, 2008, subject to approvals by regulatory authorities. As a result, Hitachi's stake in Hitachi Displays is to become 50.2%. The three companies will further discuss the details of the agreement.