In continuation of the set-up of a project team to discuss the possible business alliance between the companies, Japanese Panasonic and Sanyo announced on December 19 that they have concluded the capital and business alliance agreement, whereby Panasonic will incorporate Sanyo as its subsidiary, according to a press release by Panasonic.

Pursuant to the agreement, Panasonic will acquire a 70.5% stake in Sanyo for approximately 800 billion Yen (US$9.0 billion; US$1= 88.7Yen). The collaboration between the companies aims to focus on the solar and rechargeable battery businesses, and on strengthening their financial and business position, according to the same source.