Yet another Indian corporate group is all set to conquer the world. Videocon group, the country's largest television-maker, is close to clinching a deal to acquire three divisions of the Thomson group, the 7,994 million euro French media and entertainment giant, for a consideration of over $1 billion.
As part of the deal, Videocon is eyeing Thomson's television picture tubes factories in Europe. A formal announcement is slated to be announced by next week, sources said.
If it goes through, this could transform the Indian electronics giant into the world's largest maker of television tubes and also act as a springboard for Videocon's plans to expand overseas. With the advantage of a manufacturing hub, Videocon will then seek to stretch its footprint across fortress Europe.
The Dhoots, founders of the Videocon group, have found a novel way to structure the deal and lessen the financial impact on Videocon International, its flagship company which sells consumer durables under the Videocon brand.
The cash-rich Videocon Industries, a group company, will enter into an agreement with Thomson group. The company owns 50% stake in Ravva oilfields which rakes in close to Rs 600 crore annually from exploration.