Philips to merge lighting component arms into standalone business

Philips is to merge two lighting components divisions into a new business which could be separately listed, a major step in its strategy to focus on health care and large lighting systems and services.

The 120-year-old Dutch company - which started as a pioneer in electric lighting - has shifted away from the consumer electronics sector in a move involving more than 5,000 job cuts and selling its TV business, according to Reuters.

The merger of its Lumileds components and its automotive lighting businesses, which had combined sales of 1.4 billion euros ($1.9 billion) last year, should be completed by the first half of 2015, and cost Philips 30 million euros.

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