Hong Kong, Nov 03: China's TCL and rival Thomson of France agreed today to form the world's largest TV maker in a venture that will produce 18 million television sets a year, the companies said. The two companies will combine their television and DVD businesses and assets to form the new company -- TCL-Thomson Electronics, they said in separate statements received here.

"The two groups have decided to join together their respective strengths in the TV industry," TCL said in a statement. Hong Kong-listed TCL International Holdings Ltd will have a 67 per cent stake in the venture while Thomson AG, which trades in Paris and New York, will hold 33 per cent, they said.

Thomson is the biggest seller of television sets in the United States while TCL is China's top producer of TVS.

The venture will bring together TCL's position in China as market leader with the extensive sales and distribution network, and large and flexible manufacturing base of Thomson's position in north America and Europe. TCL-Thomson will consolidate its position as a global TV leader, offer a complete and high-quality product range, address all key markets competitively and seize development opportunities in the fast growing Chinese market, it said.

Bureau Report