Panasonic Rubbishes Rumors About A Potential ZKW Acquisition [VIDEO]

Dec 06, 2016 06:14 AM EST | Vinay Patel

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Panasonic is leaving no stone unturned to rev up its push into the automotive electronics market. In line with this, the Japanese electronics giant is looking to buy European automotive light maker ZKW Group.

The automotive electronics industry is undergoing some abrupt changes amidst the current upsurge in electric vehicles (EV) and self-driving vehicles and obviously, Japan's Panasonic Corp. do not want to be left behind. According to Nikkei Asian Review, the multinational electronics corporation is on the verge of finalizing its ZKW Group acquisition for a steep 100 billion yen ($885 million) --- or something around that figure. The report also claims the two companies could finalize a basic deal by mid-December.

ZKW is a privately held supplier of light-emitting diode (LED) headlights and lighting modules. Its main clients include BMW Group and General Motors. It anticipates sales of about a staggering 900 million euros this year. While multiple reports centering on Panasonic's purported plan to buy ZKW have been running rampant, there were no facts or evidences to back this claim. In fact, a ZKW spokeswoman debunked rumors hinting that the Austria-based company is currently negotiating with Panasonic. ZKW is not negotiating with Panasonic or any other potential suitors for that matter, the spokeswoman clarified.

Although ZKW is one of the few deals that Panasonic is taking into consideration, no details have been decided yet, a person close to the matter told Reuters. Since the source was not authorized to shed more light on the deal, the limited information provided suggests that the deal could fall through. Panasonic also rubbished speculations about the said deal via a statement, noting that it was not something the company had publicized. Panasonic did not divulge any more details.

Panasonic is reportedly revamping itself as a maker of various auto parts and energy-saving home systems. This is in a bid to evade the stiff price competition from smartphones and consumer products with lower margin. No doubt, buying ZKW would broaden its automotive lineup, which focuses on navigation systems and batteries at the moment.

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