Funai Electric to acquire audio operations of Philips
OSAKA, Jan. 29 (Kyodo) — Funai Electric Co. said Tuesday it will acquire the audio equipment businesses of Royal Philips Electronics later this year so it can expand its product range and improve its performance.
The Osaka-based consumer electronics maker will acquire all shares to be floated by a new company that the Dutch maker will set up in the April-September period of 2013 in order to hand over its audio operations, the Japanese maker said.
The cost of acquisition will come to some 18 billion yen. The location of the new company has yet to be determined, Funai said.
Funai has been selling audio equipment of the Philips brand in North America and other markets under a contract with the Dutch maker, and such sales will continue after Funai buys out the new company, it said.
The two has also concluded a contract under which Funai sells its televisions under the brand name of Philips.