© melpomenem dreamstime.com Electronics Production | June 15, 2020
TCL Electronics to increase its stake in SEMP TCL to 80%
Chinese manufacturer, TCL Electronics, says that will spend a maximum price of BRL 325 million (USD 64.32 million) to double its stake in the Brazil-based joint venture SEMP TCL to 80% via its subsidiary TCL NL.
The joint venture has already gained a solid foothold with the market share of TCL brand TVs continuously increasing in Brazil, which has the world’s fifth largest population and tremendous market potential. The company’s move to raise its stake of SEMP TCL aims to pave way for TCL’s deeper penetration in this market, as a critical step of its globalisation strategy. Once the deal is finalised, SEMP TCL will become a subsidiary of the company, with its operating results, assets, and liabilities consolidated into the company’s books. SEMP manufactures and sells TVs, small home appliances, home theaters, and other consumer electronics. SEMP has robust capabilities of manufacturing, logistics and distribution. Back in August 2016, TCL Electronics founded SEMP TCL via a partnership with SEMP, in an effort to make a quick foray into the Brazilian market for its TV business. SEMP TCL is set up to mainly engage in manufacturing and selling medium- and high-end products, including TCL brand and SEMP brand TVs plus small home appliances. “We are bullish on Brazil’s market. Though COVID-19 is wreaking economic havoc worldwide, it doesn’t undermine our strong faith in globalization of our business. TCL Electronics ranks in Top 2 by TV shipments in global wide and we certainly will continuously pursue of our globalization strategy. SEMP TCL is expected to enhance our presence in Brazil and afterwards, we will extend our business into other South American countries in larger sense,” says Kevin Wang, CEO of TCL Electronics, in a press release.