Hisense to Acquire Sharp’s Mexico Unit to Penetrate American Market
Hisense a leading tv manufacturer expects to see a extra revenue of at least US$2 billion in America after signing a deal to purchase Sharp Corporation’s Mexico unit. Hisense vice-president Lin Lan said that buy purchasing Sharp’s Mexico unit will improve the struggling Japanese brand performance in America.
The purchase is said to be worth US$23.7 million will include a plant in Mexico which produces around 3 million liquid crystal displays (LCD) a year and will give Hisense the right to use the Sharp brand in America except in Brazil. The deal was announced in a press release by Sharp, which also included a filing in the Shanghai Stock Exchange by Hisense. Since entering the North American LCD television market, Sharp expanded its lineup of LCD televisions by increasing the size of LCD displays and introducing new products with special features.
But in recent years, Sharp was not able to catch up with the competition and it saw a decrease in profits compared to their previous projections and is suffering from poor performance. Brands licensed under Hisense will include Sharp, Quattron and AQUOS line. The Mexico plant will assist in resolving a bottleneck by Hisense in America as they obtain more channel resources under the Sharp brand. Once transaction is completed both companies will be managed as two separated brands in America.