Panasonic acquires additional 20% of shares in Ficosa
Panasonic announced that it will acquire an additional 20% of shares in Ficosa International, S.A., which is a global tier 1 full service supplier of automotive parts and systems. Panasonic currently has a 49% stake in the issued shares of Ficosa, and this acquisition of additional shares will make Ficosa a consolidated subsidiary of Panasonic. In order to complete this transaction, other general preconditions and conditions need to be met, including obtaining approval from European and other relevant authorities. Panasonic is aiming to reach sales of two trillion yen in its automotive business in fiscal year ending March 31, 2019, and is proceeding with initiatives targeting growth in the areas of 'Comfort', 'Safety' and 'Environment'. This includes concluding a capital and business alliance with Ficosa in June 2015, and starting the business partnership between the two companies. Since then, Panasonic and Ficosa have combined their respective technologies to jointly develop products such as electronic mirror systems, and subsequently secure orders for these new products. The companies are also working together to develop products such as Next-generation cockpit systems and Advanced driver assistance system, which will facilitate business expansion in fields where future growth is anticipated. Panasonic will acquire an additional 20% of Ficosa's issued shares by receiving of a portion of Ficosa's shares held by its shareholder Ficosa Inversion S.L.. Combined with the existing number of Ficosa's shares Panasonic holds, this additional acquisition will give Panasonic a 69% stake in the issued shares of Ficosa, subsequently making Ficosa a Panasonic's consolidated subsidiary. This transaction is not expected to have any material effect on the forecast consolidated financial results of Panasonic for fiscal year ending March 31, 2017.