TCL Electronics – Sony’s home entertainment business

MN-65038

TCL Electronics (TCL Electronics), via a wholly owned subsidiary, TTE Corporation, proposes to acquire 51% of the share capital of a newly incorporated entity of Sony Corporation (Sony), into which Sony will transfer the sales, marketing, distribution, service, design/R&D, product planning, procurement, planning and control, quality assurance and other headquarters functions of its home entertainment business (the Target Business). TCL Electronics is a global consumer electronics company. Aside from the consumer electronics activities of TCL Electronics, the other activities of TCL Industries Group comprise TCL Air Conditioners, TCL Smart Home (e.g. refrigerators and washing machines), environmental technology solutions, industrial park operation, intelligent manufacturing, and specialised industrial financial services. The Target Business comprises Sony’s global activities of research and development, manufacturing, assembly, testing, sales, marketing, distribution, after-sales and customer services in relation to home entertainment products. In Australia: • TCL's activities are limited to the sales of LCD televisions, home audio systems, refrigerators, washing machines, air conditioners, office displays, mobile phones, tablets and smart wearable products to major retailers. • the Target Business is currently operated through Sony Australia Ltd, which supplies LCD televisions, OLED televisions, commercial LCD displays, commercial OLED displays, home projectors, commercial projectors, home audio systems, turntables, and neckband speakers. The only products and services supplied by both Parties in Australia are LCD televisions and home audio systems.