VIDEOCON
BUYS ITALIAN UNIT
The Videocon group
is making a strong pitch in Europe. In its biggest step overseas,
the group has struck a deal with French technology major Thomson
to acquire its picture tube plant in Italy.
Thomson's CPT plant,
seventh largest in Europe, generates sales of more than 200
million a year.
This is Videocon's
second major acquisition in Italy. Earlier, it had bought
out partner Necchi Compressori from a compressor joint venture.
The Italian JV became a wholly-owned subsidiary of Videocon
in 2002.
When contacted,
Videocon group chairman and managing director V N Dhoot declined
to give the deal amount or the funding structure of what is
believed to be a multi-million dollar acquisition. His position
is that, "The details of the Thomson deal will be made
public in a few day's time.
Thomson management
will be here later this week, when we will make a formal announcement
of the acqisition."
The deal could
also have a positive spin off for the listed arm of Videocon
group- Videocon International, which makes colour televisions
and glass panels.
