Feb 2 2011
Panasonic Corporation (NYSE:PC)(TOKYO:6752)("Panasonic") announced that it had executed a transfer agreement with respect to the automotive nickel-hydride battery business ("the Business"), currently undertaken at the internal divisional Energy Company's Shonan Plant, to Hunan Corun New Energy Co., Ltd. ("Hunan Corun New Energy") on January 31, 2011.
1. Reason for the Transfer
This transfer of the Business is a countermeasure aimed at addressing concerns raised by the Ministry of Commerce of the People's Republic of China ("China's Ministry of Commerce") with regard to the continued competitive nature of the market following the consolidation of SANYO Electric Co., Ltd. as a subsidiary of Panasonic. In connection with the execution of the transfer agreement, details of Hunan Corun New Energy, the scope of the business to be transferred, the agreement and related matters have been reviewed and approved in accordance with the requirements of China's Ministry of Commerce.
2. Transfer Method
Panasonic will transfer the relevant assets to Shonan Energy Co., Ltd. ("Shonan Energy"), a wholly-owned subsidiary. Thereafter, all shares of Shonan Energy will be transferred to Hunan Corun New Energy. The transfer is scheduled to be completed within three months of January 31, 2011, the date of the agreement.
3. Business to be Transferred
The related assets to be transferred shall comprise all manufacturing facilities, sales, research and development departments, and client resources relating to the automotive nickel-hydride battery business of the Energy Company's Shonan Plant. In addition, Panasonic will grant licenses allowing use of related intellectual property rights.