Sharp Buys UMC Stake to Control TV in Europe

Sharp has confirmed that it is executing on its plan to take back more control of the Sharp-branded TV business via a majority investment in Skytec UMC, the parent company of UMC of Slovakia, which is the licensee for the Sharp TV brand in Europe and is running the plant in Poland that had formerly been a Sharp facility. The deal has been valued at $88.7 million.

So far, reports from Japan suggest that Sharp will find life harder in the US, where Hisense is the licensee and is reluctant to relinquish the rights. Hisense also took over a factory in Mexico.

Analyst Comment

We’ve been saying since IFA that a Sharp acquisition of UMC would make sense. However, dealing with Hisense is likely to be a different matter, although, in the end, the arrangement between Foxconn and Hisense will be about the money. Hisense will, long term, want to establish its own brand, we would suspect. (BR)

Sharp 8K Display at IFASharp 8K Display at IFA Image:Meko