Guangdong Homa Appliances hostile bid by TCL

Leading Chinese TV maker TCL is seeking to swallow Guangdong Homa Appliances, a big manufacturer of refrigerators, in a hostile takeover bid.

TCL already has a 20% stake in Homa Appliances, whose stock it began snapping up at the beginning of the year. The move, at diversifying TCL’s business portfolio, comes in response to radical changes in the business environment. After years of rapid growth, backed by a vast domestic market, Chinese appliances makers are under strong pressure to branch out into new businesses and markets.

Calling Homa Appliances “an extremely competitive company,” Li Dongsheng, chairman of TCL Electronics, the core unit of the TCL group, suggested in early March that the group would continue amassing Homa shares in the coming months