Japan – Panasonic Corporation and Sanyo have started discussions with the aim of increasing revenue and profit growth through an alliance. In a joint press release issued on Friday, November 7, both companies said they will immediately set up a project team, to start intensive discussion on the capital and business alliance. 

The release said that this will be based on the premise of making Sanyo a subsidiary of Panasonic, “keeping a variety of options in mind.” 

“We aim to maximise corporate values of both Panasonic and Sanyo to bring benefit for both companies' shareholders and all other stakeholders including customers and employees,” the release added. 

Development of rechargeable market
According to the companies, they will be able to utilise their complementary technology by working together to contribute to the development of the rechargeable battery market. 

“In the Electronics Business Domain and the Ecology Business Domain, we can both expand the range of products and mutually utilize each other's sales channels, in each of the digital, commercial, device and whitegoods businesses included in these domains. Moreover, we can aim to reduce the production and development cost through technical collaboration,” the release said. 

Sharing “know-how” 
In addition to enhancing efficiency of purchasing through joint procurements, Panasonic said it could also share its accumulated “know-how” on cost reduction with Sanyo. The company said that this would enhance Sanyo’s profitability in every business domain. 

In addition, Panasonic said it would also like to apply Sanyo’s mass production techniques to Panasonic's operation. “Both companies will further the best operations of both companies in other areas, without regard to the origin company of the method,” the statement said. 

Outcomes to be revealed by the end of December  
The release also promised to disclose the subsequent progress of the discussions between both companies at around the end of December 2008. “If we reach an agreement earlier, we will disclose the progress promptly after the agreement is made,” the release concluded.