- Chinese TV manufacturer, Hisense (600060.SS), has acquired Toshiba’s (6502.T) TV Business for RMB 750 million, according to Sina.
- The deal will be completed by the end of next February.
Why It Matters:
- After the deal, Hisense will be in charge of the whole value chain of Toshiba TV including development, operation, and marketing. By virtue of the deal, Hisense can use Toshiba’s brand for another 40 years.
- Toshiba has been in financial trouble and it is restructuring its business and selling unprofitable sectors to other companies. At an earlier time, the company sold its home appliance unit to China’s Midea Group (000333.SZ).
- For the last 13 years, Hisense has had the largest market share in China and the company has been ranked 3rd globally in the past two years. Hisense has been expanding aggressively and the company purchased Sharp’s TV production plant in Mexico in 2015.