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Panasonic in talks to buy ZKW Group

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TOKYO: Japan’s Panasonic Corp is in talks to buy European automotive light maker ZKW Group, accelerating its push into the automotive electronics market, a person familiar with the matter said.


The deal could be worth up to $1 billion and the two companies could reach a basic agreement as early as this month, the Nikkei business daily reported on Monday.


An acquisition of ZKW would expand Panasonic’s automotive line-up, which currently centres on batteries and navigation systems, as it shifts its focus to corporate clients to escape price competition from lower-margin consumer electronics manufacturers.


Panasonic said in a statement the reported deal was not something it had announced, and declined to comment further.


Austria-based ZKW declined to comment. It employed more than 5,900 staff at the end of last year and has plants in Austria, India, the Czech Republic, Slovakia, China, the United States and Mexico, according to its website.


Privately held ZKW supplies light-emitting diode headlights and lighting modules to US and European automakers such as General Motors Coand BMW. It forecasts sales of about 900 million euros (£748.83 million) in 2016.


“ZKW is among various deals that Panasonic is considering,” said the source, who was not authorised to discuss the matter and asked not to be named.


“But no details have been decided and the deal could fall through,” he said.


Panasonic has earmarked 1 trillion yen ($8.80 billion) for strategic investments including mergers and acquisitions for the four years through March 2019. Of that amount, 70 per cent has been already completed or allocated for specific deals, the company has said. — Reuters


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