Panasonic and Sanyo have agreed to start discussions on forming a capital and business alliance. The two electronics giants board of directors came to the agreement during meetings held today. Te alliance will make Sanyo a subsidiary of Panasonic.

Sanyo says that Panasonics cost reduction capabilities will allow Sanyo to be more profitable on all of its business ventures. Sanyo also says that it can reduce the cost to develop and produce products through the venture.

The two firms say that they will end discussions by the end of December 2008. There is no mention of how much Panasonic will spend to make Sanyo a subsidiary. Panasonic is the much larger company with equity of 7,443,614 yen; Sanyo has equity of 1,683,837 yen.

Via Panasonic