Chicago (IL) - Sharp and Fujitsu reached an agreement to transfer Fujitsu's liquid crystal display (LCD) operations to Sharp. The acquisition includes research and development, manufacturing and sales operations. A definitive agreement for the sale is expected to be reached in March.

Fujitsu said its decision was based on increased competition and sharply fallen prices in the LCD market. While the acquisition marks an extension for Sharp's LCD business and add about 450 employees to its company, Fujitsu withdraws completely from the LCD market.

Sharp today manufacturers mainly on LCD televisions and recently has intensified its efforts in the small and midsize LCD segment with screens for cell phones and game consoles. In contrast, Fujitsu focused its business on PC monitors a segment where the company was the market leader until 2001, but was outrun by several manufacturers such as NEC and Samsung.

Sharp holds about 33 percent of the worldwide LCD TV market, according to data from market research firm DisplaySearch.