Panasonic weighs selling China security camera factory: Nikkei

Source:Reuters Published: 2018/3/11 20:53:40

Panasonic Corp is considering selling a Chinese plant that makes security cameras in a deal it hopes will fetch more than $450 million, the Nikkei reported on Saturday.

Panasonic aims to close first-round bidding in early April, and potential buyers include US equity fund Carlyle Group and British funds Permira and CVC Capital Partners, the Nikkei said, without citing sources.

Panasonic expects to gain more than 50 billion yen ($468 million) from selling the plant in Suzhou, East China's Jiangsu Province, and use the funds in other key businesses such as vehicle batteries, the Nikkei said.

Panasonic may end talks if it does not receive a suitable bid, the Nikkei added.

A Panasonic official said the company is considering various options to strengthen its security systems business, but nothing has been decided.

Carlyle and CVC Capital Partners could not be reached for comment, while Permira declined to comment.

Panasonic, the exclusive battery cell supplier for Tesla Inc's mass-market Model 3 sedan, wants to expand its range of advanced driving-related products to better compete with top suppliers such as Bosch and Continental AG.

Aiming to reduce its dependence on Tesla, Panasonic last year joined with Toyota Motor Corp to develop and supply batteries for electric vehicles.

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