Panasonic begins Sanyo takeover

Panasonic is less dependent on exports to the US than Sanyo

Japanese electronics group Panasonic says it has begun the process to take over a majority stake in smaller rival Sanyo for 402bn yen ($4.4bn; £2.7bn).

Panasonic, the world's biggest plasma TV maker, has made an offer to buy more than half of Sanyo's shares.

Sanyo's three big shareholders - Daiwa Securities, Goldman Sachs and Sumitomo Mitsui Banking - are to sell a combined 3.07 billion shares to Panasonic.

Panasonic said Sanyo was expected to become its subsidiary by mid-December.

Panasonic is interested in Sanyo's green energy businesses, such as solar panels and batteries.

The deal comes a year after the pair first announced a potential takeover, and is set to make Panasonic a major player in the fast-growing market for hybrid car batteries.

Sanyo has been facing problems in recent years, cutting thousands of jobs and selling unprofitable operations.

Recently it has been hit by a stronger yen and rising material costs.

It was also forced to change its top management after an accounting scandal about falsifying past earnings and reporting a profit when it had actually made a loss.