Panasonic Corporation (NYSE:PC)(TOKYO:6752)("Panasonic") today announced that its Board of Directors decided to conduct mergers ("PSSJ Mergers") where Panasonic System Solutions Japan Co., Ltd ("PSSJ"), a wholly-owned consolidated subsidiary of Panasonic, will absorb Panasonic System Networks Co., Ltd. ("PSN"), a wholly-owned consolidated subsidiary of Panasonic, and Panasonic System Solutions Infrastructure Co., Ltd. ("PSSIS"), a wholly-owned subsidiary of PSN. PSSJ Mergers are expected to take effect on March 1, 2013.
It was also decided that the mobile phone base station business of Panasonic Mobile Communications Co., Ltd. ("PMC"), a wholly-owned consolidated subsidiary of Panasonic, will be transferred, through a corporate split ("PMC Station Business Transfer"), to the newly merged company after implementation of PSSJ Mergers. At the same time, the mobile phone terminal business of PMC will be transferred to a new mobile phone terminal business company which will be newly incorporated through a corporate split of PMC ("PMC Terminal Business Transfer"). Then, Panasonic will absorb the remaining PMC (having only a function to hold and manage its assets) through a merger ("PMC Merger") with an expected effective date of April 1, 2013. Details of the mergers and corporate splits are summarized below.
1. Purpose of the Reorganization
Panasonic aims for expansion of the solution business through unification of several functions for solution business, by integrating, through the merger, PSN and PSSIS, which are the companies for development and manufacture of systems, with PSSJ which is the sales and solution company, and switching to the business which is closely connected to the market and customers with an integrated operation of product development, manufacturing and sales. Further, Panasonic will seek improvement of its development capability and enhancement of its business capability, by integrating the PMC's mobile phone base station business. With respect to the PMC's mobile phone terminal business, by establishing a company specialized in the relevant business, Panasonic will enhance its business capability and aim for maintenance and expansion of its business in the mobile phone terminal market. At the same time, Panasonic will effectively utilize assets of PMC by absorbing the entity left with the function to manage PMC's assets.