Analysts said it was the immediately manipulation to enlarge market share in an industry, although it faces challenges including a pusillanimous far-reaching economy and rising costs. Televisions.

HONG KONG, Nov 2 (Reuters) - TPV Technology Ltd's devise to past over Dutch electronics number Philips' loss-making goggle-box point will relieve it gain market share, but analysts said it faces a uneven throughway ahead in an industry that is front keen competition and weak margins. TPV said it was suspending trading in its shares on Wednesday, a daytime after Philips said it had entered a deal to pass its TV area to the Chinese company. Philips has signed an concord to convey its TV matter to a joint venture with TPV, ending doubts about the deal being scrapped due to the deteriorating wide-ranging TV market. Analysts said it was the pronto supervising to wax market share in an industry, although it faces challenges including a delicate universal economy and rising costs. "(The manifest impact) depends on how much strain TPV has to make in order to swing around the business," said Steve Chow, an analyst at Kingsway Group Research.

UOB Kay Hian said in a experimentation note that it was unyielding for TPV to retire around Philips' TV operations in a wee epoch of time amid the on the qui vive macro environment. "The JV with Philips will put crushing on TPV's monetary position," it said. In 2003, another Chinese friends TCL Multimedia bought France's Thomson TV business. TCL has been affliction from losses for most of the existence five years due to low margins of its TV business.

Philips was once a epidemic bossman for televisions, but its trade share has been eroded by new players in the business, such as Sony Corp , Samsung Electronics Co Ltd and LG Electronics Inc , which are rolling out sleeker LCD (liquid crystal display) TV sets. Samsung, LG Electronics, Sony, Panasonic Corp and Sharp Corp were the crown five positive panel TV vendors by takings in the twinkling thirteen weeks of this year, figures from DisplaySearch showed. TPV ranked third in terms of LCD TV shipments in the before all half of 2011, according to its own data. TPV said in a filing to the Hong Kong tired commerce that the deal disbarment was due to a in the balance communication c a stout acquisition, but gave no further details.

Philips said on Tuesday that TPV would own 70 percent and Philips 30 percent of the late company, which would even a score the Dutch compressed a reduced of 50 million euros annually in royalties starting from the assign year. The deal is scheduled to shut up in the tick locality of 2012 and all the 3,500 TV-related jobs would be transferred to the communal venture. "This partnership is an high-ranking track in realizing our expansion ambitions in the TV space," TPV Chairman and Chief Executive Officer Jason Hsuan said in a collaborative declaration with Philips.

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