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Sunday, July 20, 2014
Panasonic Seeks To Sell Its Mobile Base Station Business to Nokia

Panasonic has reached an agreement to sell its cellphone base station business to Nokia, according to a Nikkei report.

The Japanese electronics maker, which has been streamlining, wants to further free itself to focus on growth fields.

Sources on Saturday told The Nikkei that Panasonic will part with the base station operations of subsidiary Panasonic System Networks, which include wireless control systems for communications equipment. The Tokyo-based unit delivers the equipment to major Japanese wireless carrier NTT Docomo, among others. I

Panasonic is expected to exchange a memorandum of understanding with Nokia soon. The two companies will then work out the finer details, including the future of the unit's employees, and finalize a deal. The transaction's value is likely to be in the billions of yen.

The Japanese parent is looking to sell the unit by the end of the current fiscal year through next March, the report added.

The transaction could help Nokia capitalize on Panasonic's ties with NTT Docomo to further expand its market share in Japan.

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