China's Hisense to take over Sharp's TV business in North and South America
Chinese multinational white goods manufacturer Hisense Group has agreed to take over the television business of Japanese consumer electronics giant Sharp in North and South America in a deal worth US$23.7 million.
Hisense on Friday said it will purchase all equity and assets of Sharp America, including its TV factory in Mexico, the rights to use the “Sharp” brand name, and the Japanese company’s distribution network in those regions.
In a statement, Hisense estimated that it will increase its annual revenue from those regions by US$2 billion after the transaction is completed.
It said more details of the takeover will be discussed in a press conference scheduled for August 4.
A state-owned enterprise, Hisense is headquartered in Qingdao, an industrial city in the eastern coastal province of Shandong.
The company controls two publicly listed companies: Hong Kong-traded refrigerator and air conditioner manufacturer Hisense Kelon Electrical Holdings, and TV maker Hisense Electric Company, which is listed in Shanghai and is the group's largest subsidiary.
Founded in 1912 in Osaka, Sharp has long been one of the world’s largest TV manufacturers. But the company has struggled in recent years, which prompted it to announce earlier this year a restructuring that involves cutting 10 per cent of its 49,000 global staff.
Sharp reported on Friday a wider net loss of 33.98 billion yen (US$274 million) in its first fiscal quarter ended June, up from 1.79 billion yen in the same period last year. It blamed the loss on decreased sales of its liquid crystal display TVs, smartphones and air purifiers.