Philips and TPV Technology form strategic partnership

Royal Philips Electronics has entered into a term sheet to transfer its Television business into a joint venture with TPV Technology as part of a long-term strategic partnership, in which 70 per cent owned by TPV and 30 per cent by Philips.

The joint venture will be responsible for the design, manufacturing, distribution, marketing and sales of Philips’ Television business worldwide, with the exception of mainland China, India, the US, Canada, Mexico and certain countries in South America.

As part of the transaction, Philips will grant the joint venture the right to use the Philips brand, under certain quality and customer care standards, for the Television business worldwide, excluding the above-mentioned territories.

In exchange, Philips will receive revenue-based royalty payments.