ID :
197937
Thu, 07/28/2011 - 18:00
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https://oananews.org//node/197937
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Panasonic to sell Sanyo's appliance businesses to China's Haier
TOKYO (Kyodo) - Sanyo Electric Co. said Thursday it has struck an in-principle deal with Haier Group Co. to sell its washing machine and refrigerator operations in Japan and home appliance business in Southeast Asia to the Chinese firm by next March.
The move comes as Sanyo's parent firm Panasonic Corp. aims to eliminate overlapping business within the group to focus its management resources on such areas as solar and lithium-ion battery business, whose market is expected to expand.
''As we accelerate elimination of overlapping business after making Sanyo our wholly owned subsidiary, we are proceeding with selection and concentration'' in the home appliance business, Panasonic Corp. Managing Director Makoto Uenoyama said at a news conference in Tokyo.
''We will continue to concentrate management resources on Panasonic with an eye on enhancing product appeal and expanding business,'' he said, adding the company is still in ''the middle stage'' in eliminating overlapping business.
Sanyo said it and Haier aim to enter into a final agreement involving a total of nine companies in Japan and Southeast Asia by the end of September. Annual sales of the consolidated Sanyo units total about 70 billion yen.
Although Sanyo did not disclose the sum of the sales, the deal is likely to be around 10 billion yen.
It is rare for a Chinese company to buy a Japanese manufacturer's mainstay business, a sign of accelerating moves by fast-growing Chinese businesses to acquire Japanese firms following deals involving apparel maker Renown Inc. and appliance retailer Laox Co. among known cases.
In Japan, washing machine manufacturer Sanyo Aqua Corp., based in Moriguchi, Osaka Prefecture, and Haier Sanyo Electric Co., a Tokyo-based joint firm which develops refrigerators, are among firms subject to the deal, Sanyo said.
In Southeast Asia, Sanyo will sell its shareholdings in units in Indonesia, Malaysia, the Philippines, Thailand and Vietnam.
Under the agreement, Haier will have the rights to use the Sanyo brand for a ''fixed period,'' in Indonesia, Vietnam, the Philippines and Malaysia on such products as washing machines, refrigerators, air conditioners, televisions and other appliances.
About 2,300 employees at Sanyo's consolidated units will be basically transferred to Haier, according to Sanyo.
Utilizing Sanyo's strong brand power and technology, Haier expects to expand its business in Japan and Southeast Asia, where the Chinese appliance firm has been struggling to bolster its presence.
Sanyo and Haier concluded a business alliance in 2002 on sales of home appliances and technology cooperation, but have since dissolved the partnership except for development of refrigerators.
The move comes as Sanyo's parent firm Panasonic Corp. aims to eliminate overlapping business within the group to focus its management resources on such areas as solar and lithium-ion battery business, whose market is expected to expand.
''As we accelerate elimination of overlapping business after making Sanyo our wholly owned subsidiary, we are proceeding with selection and concentration'' in the home appliance business, Panasonic Corp. Managing Director Makoto Uenoyama said at a news conference in Tokyo.
''We will continue to concentrate management resources on Panasonic with an eye on enhancing product appeal and expanding business,'' he said, adding the company is still in ''the middle stage'' in eliminating overlapping business.
Sanyo said it and Haier aim to enter into a final agreement involving a total of nine companies in Japan and Southeast Asia by the end of September. Annual sales of the consolidated Sanyo units total about 70 billion yen.
Although Sanyo did not disclose the sum of the sales, the deal is likely to be around 10 billion yen.
It is rare for a Chinese company to buy a Japanese manufacturer's mainstay business, a sign of accelerating moves by fast-growing Chinese businesses to acquire Japanese firms following deals involving apparel maker Renown Inc. and appliance retailer Laox Co. among known cases.
In Japan, washing machine manufacturer Sanyo Aqua Corp., based in Moriguchi, Osaka Prefecture, and Haier Sanyo Electric Co., a Tokyo-based joint firm which develops refrigerators, are among firms subject to the deal, Sanyo said.
In Southeast Asia, Sanyo will sell its shareholdings in units in Indonesia, Malaysia, the Philippines, Thailand and Vietnam.
Under the agreement, Haier will have the rights to use the Sanyo brand for a ''fixed period,'' in Indonesia, Vietnam, the Philippines and Malaysia on such products as washing machines, refrigerators, air conditioners, televisions and other appliances.
About 2,300 employees at Sanyo's consolidated units will be basically transferred to Haier, according to Sanyo.
Utilizing Sanyo's strong brand power and technology, Haier expects to expand its business in Japan and Southeast Asia, where the Chinese appliance firm has been struggling to bolster its presence.
Sanyo and Haier concluded a business alliance in 2002 on sales of home appliances and technology cooperation, but have since dissolved the partnership except for development of refrigerators.
