TCL Corp, China's leading consumer electronics manufacturer, and Alcatel, the French telecommunications equipment group, are to unravel their mobile handset joint venture after only nine months because it has failed to stem losses amid tough market conditions. Alcatel's decision to sell its 45 per cent stake in the venture to TCL at a sharp discount to its asset value is a setback for the Chinese company's expansion strategy of buying international technology and brand names.
TCL's deal with Alcatel, and a similar alliance with Thomson, the French television maker, had been hailed as the beginning of a new period of consolidation aimed at marrying low-cost Chinese manufacturers with brands that have a global presence.
