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Chief Executive Kazuhiro Tsuga said at a
briefing on Thursday that Panasonic doesn't have specific
acquisition targets in mind for now. But he said the firm will
spend around 200 billion yen on M&A in the fiscal year that
kicks off in April alone, and pledged to improve on Panasonic's
patchy track record on big deals.
"With strategic investments, if there's an opportunity to
accelerate growth, you need funds. That's the idea behind the 1
trillion yen figure," he said. Tsuga has spearheaded a radical
restructuring at the Osaka-based company that has made it one of
the strongest turnaround stories in Japan's embattled technology
sector.
Tsuga previously told Reuters that company was interested in M&A
deals in the European white goods market, a sector where
Panasonic has comparatively low brand recognition.
The firm said on Thursday it's targeting operating profit of 430
billion yen in the next fiscal year, up nearly 25 percent from
the 350 billion yen it expects for the year ending March 31.
Panasonic's earnings have been bolstered by moving faster than
peers like Sony Corp and Sharp Corp to overhaul business models
squeezed by competition from cheaper Asian rivals and caught
flat-footed in a smartphone race led by Apple Inc and Samsung
Electronics. Out has gone reliance on mass consumer goods like
TVs and smartphones, and in has come a focus on areas like
automotive technology and energy-efficient home appliances.
Tsuga also sought to ease concerns that an expensive acquisition
could set back its finances, which took years to recover from
the deal agreed in 2008 to buy cross-town rival Sanyo for a sum
equal to about $9 billion at the time.
Without referring to that deal by name, Tsuga said Panasonic had
learnt from its past record and would make sure such deals would
"not leave a legacy of losses".
($1 = 118.4300 yen)
(Editing by Kenneth Maxwell)
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