Sanyo Electric Co., Ltd. plans to sell much of its major appliance business to China’s Haier Group, in an uncommon instance of a Japanese electronics conglomerate allowing a rising Chinese rival take over a chunk of a major business segment.
The sale of the Sanyo operations—mostly washing-machine and refrigerator businesses—is part of Panasonic’s efforts to eliminate overlapping areas since its 2009 purchase of Sanyo. For Haier, the acquisition of Sanyo’s businesses will help it move a step closer to becoming a globally recognized quality appliance brand like Whirlpool or Electrolux.
Haier Group will have the rights to use the Sanyo brand name on washing machines, refrigerators, air-conditioners, TVs, and other consumer appliances in Vietnam, Indonesia, the Philippines, and Malaysia under the SANYO brand for a limited, but unspecified, period of time.
The acquisition of the Sanyo businesses is “an important part of Haier’s overall growth strategy,” said Haier Vice President Du Jingguo in a statement released Thursday.
According to the Wall Street Journal, Haier has said previously it was looking at overseas acquisitions to grow. President Yang Mianmian told Dow Jones Newswires in March it would look at opportunities that arise.
The Chinese firm previously held talks with General Electric Co. in 2008 to buy the U.S. firm’s appliance unit. Before the talks with GE, Haier made an unsuccessful bid for Maytag Corp. in 2004 but lost out to Whirlpool Corp.
Haier holds more than 6% of the world’s white-goods market.