BEIJING - Royal Philips Electronics NV plans to buy a unit of Chinese home appliance maker Shanghai Povos Enterprise Group Co for 2.3 billion yuan ($355 million) to 2.5 billion yuan, Xinhua News Agency reported, citing unidentified people familiar with the transaction.

The unit, Povos Appliance (Shanghai) Co, will become a wholly owned subsidiary of the Netherlands-based Philips after the deal, Xinhua said. Details of the acquisition will be announced within one to two months after both companies complete relevant procedures, it said.

Povos Appliance's domestic sales rose 39 percent to 400 million yuan in the first five months of 2011, Xinhua said, citing statistics reported by other media.

Joost Akkermans, an Amsterdam-based spokesman for Philips, Europe's largest consumer electronics company, declined to comment when contacted by telephone on Monday.

Bloomberg News