Panasonic Corp <6752.T> has decided to sell its unit's washing machine and refrigerator operations in Japan and Southeast Asia to Chinese firm Haier Group Co <1169.HK> for about 10 billion yen ($128.3 million), Japan's Nikkei business daily reported.
Panasonic subsidiary Sanyo Electric Co will sell all its holdings in about 10 units and affiliates, Nikkei said. These firms handle development, manufacturing and sales, generating annual revenue of around 70 billion yen ($897.8 million), the paper said.
The deals will completed by the end of 2011 and most of the businesses' 2,000 or so employees will be transferred to Haier, the daily reported.
In Japan, the deal will involve a trio of companies, including wholly-owned Sanyo washing machine unit Sanyo Aqua and Haier Sanyo Electric Co, a 60-40 refrigerator development joint venture between Haier and Sanyo, Nikkei said.
Sanyo units in Indonesia, Vietnam, the Philippines and elsewhere will also be sold, along with shares in their affiliates, the daily said, adding that Haier will be allowed to use the Sanyo brand in Southeast Asia for a certain period.
The deal excludes China and other areas where Haier has a solid footing, the daily said. Sanyo and Haier are likely to announce their agreement shortly, Nikkei added.
($1 = 77.965 Japanese Yen)
(Reporting by Meenakshi Iyer in Bangalore; Editing by Viraj Nair)