In 40-year deal.
The transfer of the Toshiba home appliances business to the Chinese Midea Group to jointly explore growth opportunities was confirmed in April. One of these initiatives is the DA under which Midea will acquire an 80.1% stake valued at US$473 million, in Toshiba Lifestyle Products and Services Corporation (TLSC), which is the home appliances arm of Toshiba.
The business will continue to develop, manufacture and market whitegoods, such as refrigerators, washing machines, vacuum cleaners and other small domestic appliances under the Toshiba brand name and the current company name. All employees of TLSC group engaged in the business will continue to work with TLSC group.
The Chinese company will be licensed to use the Toshiba brand worldwide in relation to the business for the next 40 years, yes that’s 2056. Additionally, Midea will receive more than 5’000 IP assets and a license to use other home appliance related intellectual properties retained by Toshiba.