Electronics giant Panasonic Corp. said Monday it has officially turned Sanyo Electric Co. into a subsidiary after acquiring a 50.27 percent stake in its smaller rival.
Panasonic acquired Sanyo shares for around ¥403.3 billion and will send three of its officials to Sanyo's board.
The merger will create Japan's second-largest electronics giant, with projected combined sales of ¥8.6 trillion. Hitachi Ltd. is projecting sales of ¥8.7 trillion for the business year that ends March 31.
Panasonic, the world's top maker of plasma display televisions, hopes to strengthen its competitive edge in green technology by tapping Sanyo's top-ranking rechargeable battery and solar cell technologies.
The company is expected to unveil details of the synergy effects when it outlines its midterm business strategy in early January.