Panasonic Corp said it would be able to enter into JPY 100 billion or USD 1 billion deal as the electric car battery and solar panel manufacturer heads towards its first yearly profit in three years. According to Chief Financial Officer Hideaki Kawai, possible acquisitions could be with a firm that could advance Panasonic's auto technology. It could also be done with a marketing channel abroad for its home-related business. Last month, Panasonic said it had acquired a 90% stake in a wiring device manufacturer in Istanbul. The deal was worth USD 460 million.
In an interview with Bloomberg, Kawai said, "We've improved our financial standing where we can afford an M&A at the 100-billion-yen level. We'll make a very careful study into any deal but our financial condition won't limit us."
According to a Bloomberg report, Panasonic had cut its workforce by around 71,000 in the past two years. President Kazuhiro Tsuga had also speed up reforms by stopping some operations for its smartphone and plasma panel units. Tsuga said he intended to restructure the firm until March 2015. He said he would spend JPY 250 billion to stop the losses from the company's products like televisions, mobile phones and semiconductors, among others. However, Kawai said the expenses allocated for the reforms may go over the initial target as there was now waning demand for Panasonic's air conditioners and digital cameras.
Kawai told Bloomberg, "Our reform has just started. Our business environment is changing so rapidly but our aim of ending losses at unprofitable operations within two years remains the same."
Last month, Panasonic said it would be doubling its profit forecast for the year. The company also predicted that it would post a net income of JPY 100 billion in the year that will end on March next year.
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