Philips to merge subsidiaries

|By:, SA News Editor

Philips (PHG) will merge its Lumileds LED components and Automotive lighting subsidiaries into one unit, as the company attempts to bring in more third-party capital.

"As a world-leading lighting components business, they will have increased flexibility to attract additional investors to accelerate growth," says CEO Frans van Houten.

In 2013, the two divisions amassed more than $1.9B in combined sales. The merger is expected to take place in the first half of 2015, and will cost Philips around €30M in the second half of this year.