On September 26, 2024, TCL Technology Group Corporation (“TCL Technology,” stock code: 000100.SZ) and LG Display Co., Ltd. (“LGD,” NYSE: LPL; KRX: 034220) announced that, TCL Technology’s subsidiary, TCL China Star Optoelectronics Technology Co., Ltd. (“TCL CSOT”), intends to acquire an 80% stake in LG Display (China) Co., Ltd., and a 100% stake in LG Display (Guangzhou) Co., Ltd., and related technology and support services essential for operations from LGD.

The base purchase price for the acquisition is CNY10.8 billion, subject to adjustments. The formal agreement has been signed, and the transaction closing is contingent upon the fulfillment of certain conditions precedent. The deal is expected to close in the first quarter of 2025.

This significant transaction marks a milestone in the development of the global LCD panel market by Chinese display companies. It also represents a key industry acquisition between a Chinese high-tech manufacturing giant and a global multinational enterprise amidst the global supply chain transformation in manufacturing. The acquisition will enable TCL CSOT to leverage economies of scale and industry synergies. After the acquisition, LG Display (China) Co., Ltd. and TCL CSOT’s T9 production line, both located in Guangzhou, will form a “Twin Star” factory setup. This setup will help optimize resource allocation, reduce operational costs, improve efficiency, enhance production line competitiveness, and boost the company’s long-term profitability.

Fangda acted as both the lead counsel and the transaction legal counsel for TCL CSOT, providing comprehensive transactional services and legal advice. The transaction was jointly supported by Fangda’s Shenzhen office and its Hong Kong office in the Greater Bay Area, as well as the Shanghai office and the Beijing office. Fangda’s integrated approach ensured the efficient execution and progression of the deal.

The acquisition was led by corporate partner Qiang Ma. Key Corporate team members included counsels Haipan Hu associate Claire Li and others . The Antitrust team, led by partners Michael Han and Jin Wang, handled the multijurisdictional merger control filings. Key Antitrust team members included counsel Joy Wong and associates Derek Liu and Jeanette Zhang. Dispute Resolution partners Daniel Huang and Zhou Chen provided crucial legal support as well.

In recent years, Fangda’s Greater Bay Area corporate team has been committed to assisting leading industrial clients in executing various key M&A transactions. This acquisition represents another major transaction in the high-end manufacturing sector that Fangda has facilitated between 2023 and 2024.