NEW YORK (TheStreet) -- Corning (GLW) - Get Corning Inc Report and Samsung's display manufacturing division have announce a new agreement giving Corning full control of their display manufacturing joint venture.

Corning stock gained 13.1% $17.36 on the news.

According to last night's announcement Corning will assume full ownership of Samsung Corning Precision Materials (SCP) which manufacturers LCD glass in Korea. Samsung Display had owned 43% of that joint venture.

In exchange, Samsung Display will receive $1.9 billion in preferred shares from Corning. When and if converted the deal will give Samsung slightly more than 7% ownership in Corning. To ease competitors' possible fears the two companies set a limit to Samsung's investment. According to the official press release:

"Effective upon closing, a shareholder agreement between Corning and Samsung will limit Samsung's ownership to no more than 9% of Corning's common shares on an as-converted basis."

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As another part of the overall deal Corning has agreed to continue supplying Samsung with high-quality smartphone, tablet and computer displays for the next ten years, until 2023.

Corning displays are best known to the public as "Gorilla Glass". The super-durable design is used in mobile products manufactured by numerous companies including Apple (AAPL) - Get Apple Inc. (AAPL) Report, Google's (GOOG) - Get Alphabet Inc. Class C Report Motorola division and HTC.

Samsung and Corning say they're also looking forward to "a strengthening of the two companies' technology collaborations on strategic product development and commercialization initiatives".

Written by Gary Krakow in New York.

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