Merck acquires Avecia's OLED units

The transaction, which is subject to regulatory approval and approval by E. Merck OHG, is expected to be completed during the first quarter of 2005. The acquisition includes Covion Organic Semiconductors GmbH in Frankfurt, Germany, a leader in the design, development and manufacture of high quality OLED materials. It also includes Avecia's polymer electronics research and development activities based in Manchester. Both the Covion OLEDs and the polymer electronics activities will be integrated into Merck's Liquid Crystals Division. Approximately 100 employees in these two units will transfer to Merck upon completion of the sale. "It is apparent that liquid crystal displays will be the dominant flat-panel technology for some years to come," Merck Chairman Bernhard Scheuble said. "During 2004, Merck further strengthened its world-market leadership position in liquid crystals, especially for the most promising high-end television applications. We see this acquisition as an opportunity to explore alternative technologies for the future, which is a prudent step for any market leader."