Sony and Samsung announced on Monday a deal that would transfer whole ownership of S-LCD Corp, an entity jointly-owned by the two consumer electronic firms, to the South Korean tech giant.

Pending finalisation of all details of the agreement, Samsung is set to pay $935 million for its Japanese counterpart shares of 49 percent, allowing the former full control of a joint venture that was started in 2004.

The deal, market experts said, would deliver substantial savings to Sony for fiscal year 2012 following its string of losses over the past seven years as other consumer electronic makers, mostly South Korean firms such as LG and Samsung, chipped away its dominant market shares.

Sony's latest move, analysts said, will also provide some breathing room for the company, which has seen its rivals enjoying brisk sales while it continues to slide in the flat panel TV market competition.

Experts view Sony's divestment as a way to regain profitability, with the adjustment liquidating a steadily bleeding investment while at the same time ensuring the regular supply of flat panels for its manufacture of LCD televisions.

Plunging prices of LCD TV units, as supplies flooded the market, has convinced Sony to simply acquire panel supplies instead of maintaining a factory to manufacture them.

In a statement, both Sony and Samsung revealed that the new agreement also calls for an arrangement that would secure the former's "flexible and steady supply of LCD panels, based on market prices and without the cost of operating a manufacturing facility."

On its part, Samsung envisions to achieve "heightened flexibility, speed and efficiency in both panel production and business operations," as afforded by the deal, according to reports by Agence France Presse (AFP).

While considerable savings will be recorded due to its agreement with Samsung, Sony officials have admitted that losses of up to $846 million will be absorbed by the company for the third quarter of the current financial year.

The loss, Sony said, was wholly attributed to dipping values of its S-LCD shares.