Philips cancels home entertainment business sale
Amsterdam-based Philips announced Oct. 25 that it has terminated an agreement with Funai Electric for the sale of its audio, video, multimedia and accessories business.
In January, Philips agreed to sell its audio, video, multimedia and accessories business to Funai. Philips worked hard to complete the sale in the second half of this year.
In the final preparation phase, Funai has refused to take the necessary steps to enable completion of the transaction and the transfer of the business.
As a result, Philips has decided to terminate the agreement and will start arbitration proceedings in the International Court of Arbitration (ICC). Philips wants to recover damages caused by Funai.
Philips said in a statement that it will proceed to investigate other opportunities for the audio, video, multimedia and accessories business. The company said it will continue to run this business as a standalone entity called WOOX Innovations.
“We regret that we have to take this action, but we do so to protect our business and the interests of all our stakeholders,” Philips Chief Executive Officer (CEO) Frans van Houten said in a statement.