Chinese consumer electronics maker TCL Technology Group Corp said on Thursday that it plans to acquire an 80 percent stake in display panel maker LG Display China and 100 percent stake in LG Display Guangzhou through its subsidiary TCL China Star Optoelectronics Technology for 10.8 billion yuan ($1.54 billion).

The LG Display China plants mainly produce large-sized liquid crystal display or LCD used for televisions and commercial display equipment, while the main products of LG Display Guangzhou’ factories cover LCD modules.

TCL Technology said the deal is expected to help optimize resource allocation, reduce operational costs and improve efficiency, as well as enhance the competitiveness of its production lines and the company’s long-term profitability.

South Korean tech company LG Display said in a statement that it has signed an agreement to transfer its stake in its LCD panel and module factories in Guangzhou, Guangdong province to TCL CSOT. The deal is expected to be completed by March 31, 2025.

The sale is part of LG Display’s broader strategy of shifting its focus from the saturated LCD market to the organic light-emitting diode (OLED) business, which has become a key growth area.

Analysts say the acquisition will allow TCL CSOT to accelerate the production of large-sized LCD TV panels and expand its market share in the increasingly competitive LCD industry.

fanfeifei@chinadaily.com.cn