Panasonic Is Set To Buy Sanyo

We reported the other day that Panasonic was gearing up to possibly buy Sanyo, but now that rumor has been confirmed. Panasonic themselves have revealed today that they will buy Sanyo in a move that will make the former the largest electronics company in Japan.

This purchase is estimated to be worth about $8.8 billion and is primarily intended to help Panasonic secure the Sanyo battery market. This battery sector includes lithium-ion batteries for notebooks, PMPs, cellphones and for solar power and automative technology.

The terms of this agreement have not yet been released, though it is believed Panasonic will reduce components of Sanyo, specifically those parts that are too similar to current Panasonic product areas. This should help boost Panasonic's standing in Japan where competition is pretty fierce with the likes of Sony and Toshiba.