TOKYO, April 1 (Xinhua Silk Road) -- Sony Corporation and TCL Electronics Holdings Limited have officially signed legally-binding definitive agreements for a strategic partnership in the home entertainment field, said Sony on Tuesday.
Under the deal, Sony will establish a new subsidiary named BRAVIA Inc. to assume its home entertainment business. TCL will pay 75.4 billion yen (about 475 million U.S. dollars) for a 51 percent stake in the new subsidiary, while Sony will retain a 49 percent stake in the business.
As part of the strategic partnership, all the equity in Sony EMCS (Malaysia) Sdn. Bhd., a subsidiary responsible for the manufacturing function of Sony's home entertainment products, will be transferred to TCL. Further discussions are underway on transferring all or part of Shanghai Visual Products Co. Ltd., another subsidiary responsible for the manufacturing of Sony home entertainment products, to TCL.
Sony Senior Vice President Kenji Tanaka said that through the new company, the two sides will strive to provide new customer value to a global audience and achieve further growth in the home entertainment field.
TCL Electronics Chairperson Du Juan said the two sides will jointly leverage their respective core strengths in branding, display technology, sales channels and supply chains to drive the global development and premiumization of the new company and deliver superior products and services to consumers worldwide.
The companies signed a memorandum of understanding in January to establish a joint venture in the home entertainment field. Subject to obtaining relevant regulatory approvals and other conditions, the new company is expected to begin operations in April 2027. (Contributed by Li Shimeng, edited by Yang Linlin with Xinhua Silk Road, linlinyanglyn@163.com)
A single purchase
