Philips to merge automotive and LED lighting into one unit

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H 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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