Japanese electronics giant Sony has agreed to sell its stake in a joint liquid crystal display panel venture in South Korea to its partner Samsung Electronics, the two companies said on Monday.
Samsung will acquire all of Sony's stake in S-LCD Corp., making it a wholly owned subsidiary of the Korean company, they said in a statement.
The Asian electronics giants have worked together since the 1990s in the semiconductor and LCD fields.
They established S-LCD in South Korea in 2004 to jointly produce LCD panels mainly used for televisions. Samsung had a stake of 50 percent plus one share with Sony holding the remainder.
For its share transfer which will close by the end of January, Sony will receive 1.08 trillion won ($939 million), the statement said.
Sony is increasingly relying on other manufacturers for the key TV component as LCD panel prices continue to slide due to a supply glut.
The two companies have also agreed to enter into a new strategic agreement for the supply and purchase of LCD panels.
The new deal will help Sony secure a "flexible and steady supply" of LCD panels, based on market prices and without the cost of operating a manufacturing facility, the statement said.
Samsung expects "heightened flexibility, speed and efficiency in both panel production and business operations", it said.