Midea, one of world’s largest manufacturers of home appliances announced a majority acquisition of the home appliances business of Toshiba Corporation of Japan.
Widely acclaimed as the rising star of global consumer electronics, Midea’s acquisition of a key component of Toshiba allows the Fortune 500 giant wider access to markets across the globe. Midea will continue to develop, manufacture and market white goods, such as refrigerators, washing machines, vacuum cleaners and other small domestic appliances under the Toshiba brand name which enjoys universal appeal.
Toshiba and Midea have built up a strong relationship over 20 years in a number of areas, including compressors, small domestic appliances and inverters. This proposed transaction will further cement and enhance the collaboration of two leading players with extensive expertise to create increased immediate and long term values for consumers, business partners, employees and shareholders.
Founded in Tokyo in 1875, today’s Toshiba is at the heart of a global network of over 580 consolidated companies employing 199,000 people worldwide, with annual sales surpassing 6.6 trillion yen (US$55 billion).
Midea’s acquisition is expected to give Toshiba’s ‘white’ products a huge boost as Midea continues to blaze a trail in every sphere it enters. The move is also expected to add further impetus to Midea’s already impressive global reach which sees the company exporting to 200 countries and regions worldwide.
With an80 percent shareholding by Midea, the companies jointly went into the air conditioning compressor industry in 1999, developing a comprehensive industrial chain. The same year, Midea signed an agreement with Toshiba to cooperate on microwave projects, marking Midea’s official entry into the microwave industry. A year later the two giants became official corporate strategic partners and the liaison grew exponentially, expanding into a global strategic alliance with cooperation extending into R&D, manufacturing, sales and service.Midea is widely expected to give the Japanese giant a major fillip as it unveils a futuristic expansion strategy that’s expected to revolutionize the global home appliances market.
Midea is also the world’s largest manufacturer of air conditioners and has sold over 120,000,000 units worldwide with its patented technology hailed as the world’s best.Established in 1968, Midea’s global revenue rose to US$ 23 billion in 2015.
Midea’s ambitious expansion drive includes Sri Lanka where it recently launched its flagship air conditioner brand in exclusive partnership with Telesonic, a local consumer electronics company with an illustrious track record of nearly four decades. “Exciting times ahead”, said. Arun Mahtani, Managing Director of Telesonic LankaPvt Ltd as the company sets itself on an ambitious expansion drive as it drives Midea’s forays in the local market.