Panasonic

(PC)

and

Sanyo Electric

have agreed to begin discussions for a capital and business alliance.

In a joint statement Friday, the Japanese companies said they plan to begin "pursuing synergies between both companies and further strengthening initiatives to achieve potential revenue and profit growth through this alliance."

Reports earlier this week said Panasonic, the world's largest maker of plasma televisions, was in negotiations with Sanyo's top shareholders including

Goldman Sachs

(GS) - Get Report

,

Daiwa Securities

, and

Sumitomo Mitsui Banking

about buying their shares to take control of Sanyo, the world's largest maker of rechargeable batteries.

On Friday, the companies said they will establish a project team "based on the premise of making Sanyo a subsidiary of Panasonic, keeping a variety of options in mind."

The electronics companies said they will disclose the progress of the talks in December or earlier if progress on an agreement is made.

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