Osram has sold its general lighting business “Ledvance” for over 400 million Euros to a Chinese consortium composed of Chinese lighting company MLS, investment company IDG and a state-owned assets operation center. The deal will enable the Chinese purchasers to penetrate European and North American markets with Osram’s brand name and distribution channels. 

 

 

Osram stated, that Ledvance will continue to use the Sylvania and Osram brand names and that intellectual property rights were separated from the 400 million Euro deal. As Osram furthermore pointed out, the Chinese consortium will be able to produce more cost-efficient and therefore the distribution of the Osram brand name products on Asian markets is thought to increase. 

 

In 2015 the general lighting department contributed to 40% of Osram’s total turnover, an amount of 2.2 billion Euros, however the profits in the lighting business have been constantly in decrease. Osram’s decision to sell its lighting department follow similar strategic decisions as made by Philips and GE.gm