Taiwan's TPV Technology has agreed to buy the unbranded computer monitor and entry-level flat-screen television manufacturing operations of Dutch consumer electronics giant Philips.
Under the deal announced, TPV will pay US$358 million for the two production areas. By adding Philip's monitor business, TPV will become the world's largest manufacturer of PC monitors with sales of more than 35 million units, the manufacturer said.
Philips will continue to focus on the development and manufacturing of flat-screen TVs for the mid- and high-end segments, and on the marketing and sales of computer monitors and flat-screen TVs under the Philips brand and affiliated brands, the company said.
The move will allow the Dutch company to exit the business of making computer monitors under other companies' brands by handing over production to a company specialized in unbranded manufacturing.
Philips' move with TPV follows several deals between European or U.S. companies and Chinese manufacturers, which have been acquiring well-known international brands to strengthen their global market positions.
A fortnight ago, China's Lenovo Group agreed to buy IBM's PC division in a move to become the world's third-largest PC maker.
At the end of last year, TCL International Holding effectively acquired the TV and DVD player operations of France's Thomson through an agreement to merge their television operations into a joint venture in which TCL has majority control.