NEC Corporation and Sharp Corporation “have mutually agreed to delay the launch date of the planned joint venture,” which was expected to take effect July 1, but is being pushed back “due to unforeseen delays from COVID-19 and the global pandemic,” the companies said in a joint announcement.
“As a result of the global COVID-19 pandemic, regulatory approvals remain outstanding,” company officials say in the joint announcement. “Both companies are moving towards completion of those approvals, but uncontrollable variables have delayed the finalization of the joint venture.
The transaction is now expected to be concluded “in two to four months from the original July 1, 2020 date,” the joint announcement says.
“The Sharp and NEC joint venture, to be called Sharp NEC Display Solutions, will be mutually complementary and will allow both companies to build upon their strengths and address the visualization needs of their global customers,” according to the joint announcement.
“Both companies remain committed to the strategic rationale for the proposed joint venture and will provide further updates in due course. In the meantime, it remains business as usual for both Sharp and NEC Display Solutions,” the announcement says.
Why NEC and Sharp Are Getting Together
When Sharp and NEC announced plans for their joint venture in March, they said it “will allow both companies to build upon their strengths and address the visualization needs of their global customers.”
“This joint venture between Sharp and NEC Display Solutions will bring even greater value and benefits to customers and partners by extending our state-of-the-art product portfolios together with a range of professional service offerings,” said Hisatsugu Nakatani, president of NEC Display Solutions, Ltd., in the joint announcement.
“Sharp and NEC Display Solutions follow the same strategic approach to the future of visual solutions, focusing on superior customer satisfaction enabled by high-quality products, sales leadership excellence and committed relationship-building,” he said in the announcement.
“The combination of Sharp’s and NDS’ international strengths is mutually complementary,” said Fujikazu Nakayama, senior executive managing officer of Sharp Corporation and BU President of Business Solutions BU, in the joint announcement in March.