Philips acquires Povos Electric Appliance to expand in China
11 July 2011
Dutch electronics giant Philips today said that it will buy China's Povos Electric Appliance (Shanghai) Co to expand in the world's second-largest economy.
Although Philips did not disclose the financial terms of the transaction, Dutch news agency ANP had last month reported that Philips is likely to acquire Povos in a deal valued at around €268 million ($380 million).
This is the second deal announced today with a Chinese company.
Nestle, the Swiss food giant today said that it will buy a controlling stake in Chinese snack and candy maker Hsu Fu Chi International Ltd, for about $1.7 billion in cash. (See: Nestle to spend $1.7 billion for controlling stake in China's candy maker)
The acquisition of Povos follows the acquisition of Indian kitchen appliance maker Preethi earlier this year, in a bid to expand its reach in two prominent emerging markets.
Based in Shanghai, Povos employs around 1,800 people and its product range included rice cookers, induction cookers, electric pressure cookers and kettles, all used widely in Chinese kitchens.