Toshiba sells TV busi­ness to Hisense

China Daily (USA) - - BUSINESS - By XIE CHUANJIAO in Qing­dao, Shan­dong xiechuan­jiao@ chi­

Chi­nese home ap­pli­ance maker Hisense Group said on Tues­day that it was ac­quir­ing the tele­vi­sion busi­ness of strug­gling Ja­panese con­glom­er­ate Toshiba for 12.9 bil­lion yen ($113.44 mil­lion) to fur­ther ex­pand its over­seas busi­ness.

Un­der the deal, Hisense Elec­tric Co Ltd, the listed unit of Hisense Group, would pur­chase a 95 per­cent stake in Toshiba Vis­ual So­lu­tions Corp (TVS), a whol­ly­owned sub­sidiary of Toshiba Cor­po­ra­tion, while the Ja­panese com­pany would re­tain the bal­ance 5 per­cent stake.

The Qing­dao-based com­pany would gain ac­cess to the Ja­panese firm’s tele­vi­sion busi­ness, in­clud­ing pro­duc­tion, re­search and de­vel­op­ment and sales func­tions.

Toshiba Vis­ual will also ac­quire the world­wide li­cense to use the Toshiba brand for vis­ual so­lu­tions prod­ucts and ser­vices for 40 years, in­clud­ing connection with TVS’s ex­ist­ing busi­ness part­ners in Europe, South­east Asia and other mar­kets.

Fol­low­ing the ac­qui­si­tion, TVS will pri­mar­ily work on Toshiba TVs and var­i­ous an­cil­lary prod­ucts, in­clud­ing com­mer­cial dis­play and ad­ver­tise­ment dis­play prod­ucts.

TVS has two fac­to­ries in Ja­pan and hun­dreds of R&D em­ploy­ees, and has a sig­nif­i­cant IP port­fo­lio re­lated to TV busi­ness, in­clud­ing patents re­lated to TV image qual­ity and acous­tics.

Liu Hongxin, CEO of Hisense Group, said his com­pany would op­ti­mize TVS’s R&D re­sources, sup­ply chain and global sales chan­nels and also co­op­er­ate with each other in dis­play tech­nol­ogy, for pro­vid­ing fast growth in the Ja­panese mar­ket.

Ac­cord­ing to re­search and an­a­lyt­ics firm IHS Markit, Toshiba was ranked third in the Ja­panese tele­vi­sion mar­ket in 2016. Hisense had the high­est mar­ket share in Ja­pan among all for­eign brands.

The com­bined mar­ket share of Toshiba and Hisense brands would be 20 per­cent of the to­tal TV mar­ket in Ja­pan and the com­bi­na­tion is ex­pected to take the sec­ond slot af­ter the deal.

Toshiba is not Hisense’s first in­ter­na­tional ac­qui­si­tion. In 2015, Hisense pur­chased Sharp’s TV busi­ness in Mex­ico and ac­quired Sharp Amer­ica’s TV line for the North and South Amer­i­can mar­kets.

Ac­cord­ing to IHS Markit, Hisense’s color TV busi­ness was ranked third in the world in 2016. It has been the mar­ket leader in China for 13 con­sec­u­tive years and was a spon­sor for the 2016 Euro­pean Cup, 2018 World Cup and other top sports events.

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