Asia Tech Wire (Sep 27) -- South Korea's LG Display is selling its Guangzhou LCD assets to Chinese firm TCL Technology Group (000100.SZ) for $1.54 billion.

TCL announced Thursday that it intends to acquire, through its controlling subsidiary TCL China Star Optoelectronics Technology (TCL CSOT), an 80% stake in LG Display China Co., Ltd. (LGDCA), a 100% stake in LG Display Guangzhou Co. (LGDGZ) for a base purchase price of 10.8 billion yuan (US$1.54 billion).

LGDCA is LG Display's Gen 8.5 liquid crystal display (LCD) plant in China, mainly producing large-size LCD panels for TVs and commercial displays.

And LGDGZ is a LCD module factory, located in Huangpu District, Guangzhou City, just like LGDCA.

Early last month, TCL and LG Display disclosed that TCL CSOT was confirmed as the preferred bidder for 70% of LGDCA and 100% of LGDGZ.

The latest announcement confirms that TCL CSOT's share of LGDCA equity to be acquired has increased from 70% to 80%.

This merger deal, due to be completed in the first half of 2025, will "push CSOT's market share in large-generation LCD production capacity beyond 20%, solidifying its position as the second-largest player in the industry," said Market research firm TrendForce.