Philips to transfer its television business to Hong Kong-based TPV Technology
Louise Duffy ©RapidTVNews | 03-11-2011
Philips Electronics is to transfer its television business into a joint venture with Hong Kong-based monitor and TV manufacturer TPV Technology.
The new company will be 70% owned by TPV and 30% by Philips, and will be responsible for the design, manufacturing, distribution, marketing and sales of Philips' Television worldwide, with the exception of mainland China, India, the US, Canada, Mexico and certain countries in South America.
The deal is expected to be finalised in spring 2012, after merger clearance, governmental and TPV shareholder approvals are obtained. At this stage it is not clear how much the deal is worth.
Philips CEO Frans van Houten said in a statement: "I am pleased that we have now signed the television joint venture agreement with TPV. This agreement is important for both Philips and TPV and provides clarity to our consumers, trade partners and employees.
Philips TV division employs about 3,500 people, who will be transferred to the new joint venture.
TPV Technology reported revenue of US$5.3bn for the first six months of 2011, and profit of US$73.5m.