Philips scraps audio deal with Funai

Kyodo

Royal Philips NV has said it is terminating a deal to sell its home audio equipment unit to Funai Electric Co. due to breach of contract.

The Dutch electronics giant said Funai refused to take the steps needed to enable the completion of the transaction in the final stage. Philips has not disclosed exactly what happened.

Philips said it aims to seek damages from Funai through the Paris-based International Chamber of Commerce.

The two announced in January that Funai agreed to acquire the Philips unit for €150 million ($207 million).