Epson to acquire shares in Sanyo Epson Imaging Devices

According to a press release, Sanyo Epson has been unable to expand to the desired scale due to severe and continued price erosion beyond forecasted levels. Thus, Epson determined that greater speed was necessary to take decisive measures aimed at restructuring and improving profitability in its display business. As a result, Epson and Sanyo Electric have decided to dissolve the joint venture, and to make Sanyo Epson a wholly-owned Epson subsidiary. Epson therefore plans to purchase Sanyo Electric’s shares, which represent 45% of the companiy‘s capital, on December 28, 2006. At the same time, the Sanyo Epson will be renamed Epson Imaging Devices Corp.