Videocon acquires Thomson’s worldwide color picture tube operations

Indian companies are going aggressive with decisions to take over overseas corporations. The latest in this series of acquisitions is Videocon’s decision to buy Thomson’s worldwide color picture tube operations. The deal is worth Rs 1,280 crore (240 million euros) and would be completed by Eagle Corporation Limited, an offshore entity of the Dhoots.

Thomson is a France based company and now their color picture tube operations will be transferred to Videocon free of net cash or debt and the sale will be completed by the third quarter of 2005. Videocon has already bought Thomson’s Italian picture tube factory at the beginning of this year. In the pipeline is the acquisitions to Thomson’s color picture tube manufacturing facilities in China, Poland, and Mexico.

S. K. Shelgikar, an independent adviser to Videocon said in a statement: “The French conglomerate has, in return, agreed to invest the same amount in two listed Videocon companies — Rs 1,200 crore in Videocon Industries, which is active in power generation, and Rs 80 crore in Videocon International Ltd through a newly issued global depository receipts”.