Panasonic is lining up a $4.5bn takeover of Sanyo Electric in a deal which, if completed, will create a major electronics group in Japan.
The companies have entered into what they call a capital and business alliance agreement with "the prospect of organisational restructurings of both companies”, said the companies.
Details of the merged group have yet to be clarified. The business areas they highlight for the combined group are solar power systems, which builds on Panasonic’s existing photovoltaic cell technology, and rechargeable batteries, already a strength of Sanyo.
“Active investments will be made in batteries for hybrid electric vehicle and electric vehicle, for which future rapid market growth is expected,” said the companies.
Goldman Sachs is one of the shareholders in Sanyo which has agreed to sell its stake to Panasonic.
Last year, Sanyo did contemplate selling its semiconductor business but did not find a suitable buyer.
It represents the second merger in the Japanese electronics market in just two months and reflects the financial pressure companies are feeling. In October, Kenwood agreed to merge with Victor Co of Japan.