Hisense says it buys Toshiba’s TV op­er­a­tions

Global Times - - Biz Overview -

Hisense Elec­tric Co, a pub­licly listed sub­sidiary of Hisense Group, an­nounced on Tues­day it will pur­chase Toshiba’s TV op­er­a­tions.

Hisense Group based in Qing­dao, East China’s Shan­dong

Prov­ince, makes flat panel TVs,

house­hold ap­pli­ances and mo­bile com­mu­ni­ca­tions de­vices,

ac­cord­ing to the com­pany’s web­site.

Hisense will pur­chase 95 per­cent of the eq­uity of Toshiba Vis­ual So­lu­tions Corp, a wholly owned sub­sidiary of Toshiba Corp, for 12.9 bil­lion yen ($113.5 mil­lion), the com­pany said in an an­nounce­ment sent to the Global Times on Tues­day.

The Chi­nese com­pany will ac­quire the Ja­panese com­pany’s busi­nesses in­clud­ing pro­duc­tion, re­search and de­vel­op­ment (R&D) and sales, as well as a 40year li­cense to use the Toshiba brand for vis­ual so­lu­tion part­ners in Europe, South East Asia and other mar­kets, the an­nounce­ment noted.

Hisense will op­ti­mize Toshiba’s re­sources in­volv­ing R&D, sup­ply chains and global sales chan­nels, and the com­pa­nies will co­op­er­ate with and sup­port each other in dis­play tech­nol­ogy while pro­vid­ing com­pet­i­tive con­tent op­er­a­tion ser­vices for smart TVs for the global mar­ket and ac­com­plish fast growth in Ja­panese mar­ket, Liu Hongxin, the CEO of Hisense Group, was quoted as say­ing in the an­nounce­ment.

Sales of Toshiba TVs ranked No.3 in the Ja­panese mar­ket in 2016 and the Hisense TV mar­ket share in Ja­pan the high­est among all non-Ja­panese brands, the Chi­nese com­pany said, cit­ing IHS mar­ket re­search data.

The Chi­nese com­pany has been tap­ping into smart home ap­pli­ances in re­cent years. Dur­ing the Con­sumer Elec­tron­ics Show 2017 held in Jan­uary, it show­cased its lat­est con­nected freez­ers with built-in voice con­trols, ac­cord­ing to me­dia re­ports. Its ma­jor ri­vals in­clude South Korea-based LG Group.

Toshiba will con­sider whether to ter­mi­nate its per­sonal com­puter and TV busi­ness af­ter it in­curred a first-half group net loss for the first time in five years, Ja­panese me­dia re­ported on Fri­day, cit­ing an ex­ec­u­tive from the com­pany.

The loss for April-Septem­ber stood at 49.79 bil­lion yen, against a profit of 115.309 bil­lion yen a year ear­lier, ac­cord­ing to the me­dia re­port.

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