Sharp to fully absorb display subsidiary in strategic merger

Sharp Corporation announced it will absorb its wholly owned subsidiary, Sharp Display Solutions Corporation (SDS), in an absorption-type merger effective April 1, 2026. This move, approved by Sharp's board of directors, aims to further integrate and expand the solution business within Sharp's Smart Workplace Business Group (SWBG). The merger is classified as a simple merger for Sharp and a short-form merger for SDS, thus not requiring shareholder approval from either company.

SDS currently operates the BtoB display business, encompassing LCDs, direct-view LED displays, business projectors, and digital cinema solutions globally. Sharp intends to leverage the combined strengths to offer higher value-added solutions and enhance its competitive edge in the global market. There will be no issuance of new shares or cash delivery in connection with this merger.

Prior to the merger, Sharp plans to waive a portion of its claims against SDS to resolve SDS's current state of negative net assets. The impact of this merger on Sharp's consolidated financial performance is expected to be minor due to SDS being a wholly owned subsidiary.