SEOUL, Dec. 26 (Yonhap) -- Samsung Electronics Co., the world's largest TV and memory chipmaker, said Monday that it will absorb its liquid-emitting diode (LED) affiliate in a bid to streamline its businesses.
The tech behemoth, which already owns a 50-percent stake in Samsung LED Co., will buy the remaining 50-percent stake in the LED maker from Samsung Electro-Mechanics Co., it said.
Samsung Electro-Mechanics will receive 269,867 shares in Samsung Electronics in exchange.
The unlisted LED company was a spin-off of Samsung Electro-Mechanics in 2009.
The absorbed unit will become part of Samsung Electronics' larger component businesses that encompass semiconductors and liquid crystal display (LCD) panels.
"We decided to merge the LED unit to lead the global LED market," said Samsung's Vice Chairman Kwon Oh-hyun.
Samsung expects the merger to improve the combination of its strength in semiconductors with LED technology, which is used for lighting in automobiles and other consumer applications.