The Chinese Hisense Group and Sharp of Japan have announced that Hisense will be purchasing all equity and assets of Sharp’s TV factory in Mexico for $23.7 million with rights to use the Sharp brand name and all its channel resources in both North and South American regions.

This acquisition will have Hisense completely taking over Sharp’s TV business in these regions.

Sharp was established in 1912 and is known as the ‘father of LCD TV’. The acquisition will help Hisense gain an upper hand in both North and South America with the extended market capacity. Hisense revenues in these regions are expected to increase by $2 billion.

The move is part of Sharp’s withdrawal out of the TV set market, which is becoming increasingly competitive with fewer players.

Last year, Sharp sold its audio and video business in Europe to Universal Media Corporation of Slovakia, which included Sharp’s manufacturing base in Poland for LCD televisions.