AU Optronics (AUO) backlight unit (BLU) subsidiary Darwin Precisions has announced plans to merge with BriView Electronics, also a subsidiary of AUO, with a exchange ratio of one Darwin share for 2.25 BriView shares.

The merger is scheduled to complete on September 1, 2011 with Darwin as the remaining company but it will keep BriView's name.

AUO has a 98.52% stake in BriView and 61.32% stake in Darwin. AUO indicated that the merger is simply a re-organization within the BenQ Group, mainly to consolidated resource and expand operational scale, while improving operating efficiency and competitiveness.

AUO noted that the merger will combine the advantages of vertical consolidation in the panel industry and operations in upstream and downstream markets, and provide a complete service for panels with set manufacturing and shipments.

BriView is a LCD TV manufacturer with a capital of NT$5 billion (US$167.68 million). BriView has set up a production plant in Xiamen, China, and its production plant in Hefei recently started construction.

Darwin has a capital of NT$5.5 billion and mainly produces BLUs and LCD monitor panel modules. Darwin has production plants in Taiwan and Xiamen, Suzhou, Qingdao, Chengdu and Dongguan in China.