Samsung Signs a Long-Term Deal With Corning And Acquires 7.4% Stake

Samsung and Corning have been working together for more than 40 years, and it looks like the cooperation will continue. Samsung has announced a long-term deal with the maker of Gorilla Glass in which they acquire 7.4% stake in Corning worth $400 million. In exchange, Corning has taken full control of Samsung Corning Precision Materials Co. Ltd for $1.9 billion in which Samsung had 43% stake in the venture.

"We are excited to enter this new era of collaboration in our 40-year equity relationship with Samsung, one of the world leaders in consumer electronics," Wendell P. Weeks, chairman, chief executive officer and president, said. "The agreements provide important financial and strategic benefits to both Corning and Samsung."

According to Corning, the agreement will add $2 billion in annual sales and 20 percent to earnings in 2014 and 2015. This agreement also includes a new 10-year glass supply from Corning to Samsung LCD Display throughout 2023