The FINANCIAL — Panasonic Corporation on October 29 announced that Panasonic and GS Yuasa International Ltd. have signed a memorandum of understanding (MOU) in which Panasonic agreed to transfer its Lead Acid Battery Business that is mainly operated by Panasonic Storage Battery Co., Ltd., a wholly owned subsidiary of Panasonic, to GS Yuasa.
Panasonic and GS Yuasa are currently engaged in detailed discussions with the goal of promptly finalizing a definitive agreement, according to Panasonic.
1. Background and Objectives of the Business Transfer
Since our Lead Acid Battery Business started the production of automotive lead acid batteries in 1937, we have developed and sold our products for both industrial and automotive. In 1975, we started the production at Hamanako Plant in Shizuoka Prefecture and in October 2004, Hamanako Plant separated from Panasonic as a wholly owned subsidiary, PSB. Since its launch of the automotive battery “caos” in 2005, caos has broadened its exposure in Japan and maintained a leading position. Although the spread of start-stop system vehicles supports the steady growth in demand for lead acid batteries, competition is becoming increasingly severe due to the higher price of lead. It is necessary to invest continuously in order to maintain steady growth by strengthening the corporate management and expanding overseas sales. Thus we have decided that it would be best to run the businesses under GS Yuasa, an industry leader with its large scale business and strong competitiveness.
2. Outline of the MOU
An outline of the MOU signed by Panasonic and GS Yuasa is provided below.
1)Panasonic will transfer 85.1% of PSB shares to GS Yuasa
2)Panasonic will own the remaining 14.9% for 2 years in order to support the business transition
3)Panasonic will transfer lead acid batteries business in overseas to GS Yuasa Group in addition to the Business Transfer
3．Future Schedule
Panasonic and GS Yuasa are currently engaged in detailed discussions with the goal of promptly finalizing a definitive agreement. The Business Transfer will be made in accordance with the terms of the definitive agreement and is currently expected to be completed in 1st quarter of FY2016.
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