Japan’s Nikkei has reported the deal citing an anonymous source. Although it’s too early to confirm the deal, if it goes through, which could be as early as the end of this month, it will further consolidate Panasonic’s involvement in the burgeoning smart car industry.
As per a source familiar with the matter at hand, Panasonic Corp is in acquisition talks with, ZKW Group, a light manufacturer. This strategic move is designed to accelerate its footprint in the automotive electronics market.
Japan’s business daily, the Nikkei has reported siting an anonymous source that the deal could be as much as $1 billion. The two could reach a basic agreement as early as this month.
Panasonic’s acquisition of ZKW is likely to expand its automotive lineup, which currently caters to navigation systems and batteries segments.
The deal is in line with its move to shift focus from consumers to corporate clients in order to avoid intense price competition from lower margin consumer-electronics manufacturers.
In its statement, Panasonic has said, the deal is not something that it had announced and thus declined any further comment on it.
ZKW, is a privately held company which supplies LED headlights and lighting modules to European and U.S. auto manufacturers, including, BMW and General Motors. For this financial year, ZKW has forecasts sale of nearly $949.59 million (900 million euros).
“ZKW is among various deals that Panasonic is considering,” said the source, preferring the cover of anonymity since he was not authorized to speak to the media about it. He has however cautioned against drawing conclusions.
“But no details have been decided and the deal could fall through,” said the source.
Panasonic has disclosed that it has earmarked $8.80 billion (1 trillion yen) for strategic investments, which could include mergers and acquisitions for the four years through March 2019. Of this amount, 70% has already been allocated for specific deals, said Panasonic.
This takeover talks come in the wake of rival electronics manufacturer making headway into the automotive industry. In a $8 billion deal, Samsung Electronics Co Ltd had agreed to acquire Harman International Industries last month, in November.
Panasonic is chasing a 2 trillion yen sales target for its automotive business for the year ending 2019.
In the previous year, Panasonic had taken a 49% stake in Ficosa International, a Spanish automotive manufacturer of mirrors. It also plans to contribute $1.6 billion to Tesla Motors’ $5 billion gigafactory.
($1 = 113.5900 yen)
($1 = 0.9478 euros)
Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability
manageria.biz 
Leave a comment