Japanese electronics firm Panasonic Corporation has said it plans to sell part of its Sanyo Electric Co Ltd subsidiary to Chinese rival the Haier Group.
According to a statement released by the firm, it has signed a memorandum of understanding with Haier. Under the terms of the deal, Panasonic will transfer its consumer and commercial use washing machine businesses, consumer use refrigerator business and its white goods sales divisions covering four countries in Southeast Asia.
The company said the reason for selling off Sanyo's washing machine and fridge business was due to an "overlap with the white goods businesses in the global strategy of the Panasonic Group".
Mr Mitsuru Homma, executive vice-president of Sanyo Electric Co Ltd said: "Through the transfer of our washing machine and consumer refrigerator businesses to Haier Group, we have been able to secure the positions of the employees engaged in the businesses and ensure the continuity of the business, and we believe that the transfer will allow the customers in each region to receive the same service as before."