Japan’s Hitachi Ltd, Canon Inc. and Matsushita Electric Industrial Co. Ltd.announced that they have reached a basic agreement on liquid crystal display or LCD panel businesses and technologies.

Under the terms of this agreement, Canon and Matsushita will each acquire 24.9% of the shares of Hitachi’s subsidiary Hitachi Displays Co., Ltd. by March 31, 2008. As a result, Hitachi’s stake in Hitachi Displays, which is engaged in small- and medium-sized LCD panel-related businesses, will become 50.2%.