Sharp to join hands with Lenovo for TV business

Sharp to join hands with Lenovo for TV business

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Japanese-based electronics giant Sharp registered an increase in its shares by 7% on January 17, 2013. This jump could be a result of  the fact that the company is in talks with the computer manufacturer Lenovo Group. Both companies are said to be working together for the production of televisions.

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In the prospective tie-up, Sharp might sell all its shares in a subsidy of its Chinese LCD TV assembly plant in Nanjing to Lenovo . The deal is likely to happen by the end of 2013. On the other hand, the Chinese subsidiaries which handle development and sales of the devices, will also be turned into a 50-50 joint venture.

Plans are being made to sign a memorandum of understanding which is likely to happen in January 2013 itself. The televisions which are to be sold in China will continue to have the Sharp Aquos brand name logo. Meanwhile, plans are also being made to call for firms to jointly make inroads into other markets, which include South America and Southeast Asia.

The operating rates of these facilities are likely to be raised by increasing TV sales through Lenovo’s sales network in China. Lenovo will also be making full use of the partnership to enter into the TV business. However, Sharp has not yet released any official statement about the future of its television business.