Philips to merge automotive and LED lighting into one unit

DUTCH electronics giant Philips said yesterday it would start the process of merging its Lumileds or LED components and automotive lighting businesses into a stand-alone subsidiary within the group.

The Amsterdam-based company plans to remain a shareholder of the new company, and would continue the existing innovation collaboration. It would also explore alternatives to attract capital from third-party investors.

Philips did not rule out becoming a minority shareholder in the future.

The process of merging the two businesses into one is expected to be completed in early 2015. Philips shares rose 3.5 per cent.

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