Hewlett Packard has bought out its share of a joint venture with Samsung Electronics for $36 million, ending a 13-year agreement between the companies.
The move is part of Samsung's bid to improve its liquidity and sharpen its financial structure, according to the company. HP had a 45 per cent share in the venture, which covered chip product development, plus service and support of HP products and joint procurement.
Although the venture covered a multitude of products, neither party would comment on how its termination would affect the companies' plans for HP's PA-Risc chip. Samsung has a deal to manufacture these processors at its plants in South Korea.
Lewis Platt, HP's chairman and CEO, said: "We agreed to support Samsung's efforts to attract foreign funds and we hope this agreement will help it accomplish its structuring goals."
He said that, although the joint venture was over, HP and Samsung will continue to work in partnership.
For much of this year, Samsung has been seeking to attract hard cash to reduce its dependence on the ailing South Korean currency, the won. It is talking to a number of other third parties from outside the country that are interested in buying some of its subsidaries and wants to raise $5 billion.
Platt said that HP is likely to invest $250 million in the South Korean economy during the course of this year but did not specify which companies or ventures he was interested in. Recently, the South Korean government relaxed the rules on foreign investment to help address the financial crisis.
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