Philips integrates LED and automotive lighting divisions to raise funds for new business unit

Royal Philips said on the 30th that it will merge its LED components and automotive lighting departments to become an independent company. Philips said it would pursue "strategic options" to raise funds for the new business unit, including seeking external investors. The transaction is scheduled to be completed before the first half of 2015 at a cost of approximately 30 million euros. The two business units generated sales of 1.4 billion euros ($1.9 billion) in 2013. Philips said that merging the lighting parts and automotive lighting departments will help reduce research and development and procurement costs, and also expand the customer base. The CEO of the new company will be Lumileds CEO Pierre-Yves Lesaicherre. Siemens also spun off its entire lighting division nearly a year ago.