The acquisition will cover the research and development (R&D) and manufacturing facilities of Sanyo Electric’s refrigerator and washing machine business, as well as the sales and service business of Sanyo Electric consumer electricappliances in the above countries, including the washing machine brand “Aqua” and other “Aqua” related brands.

At the same time, Haier and Sanyo Electric have reached an agreement on the use of the “Sanyo” brand. Upon completion of the transaction, Haier will adopt a dual-brand strategy in Japan with “Haier” and “Aqua” brands.  Haier will use the “Haier” brand in Vietnam, Indonesia, the Philippinesand Malaysia, and simultaneously use the “Sanyo” brand in these markets for a specified period of time.

“Haier aims to be a leader in the global white goods business.  Sanyo Electric has already amassed excellent technological capabilitiesand a strong talentpool in the consumer electric appliances sectorinJapan and Southeast Asia with its outstanding R&D, manufacturing and sales bases.  Acquiring the refrigerator, washing machine and other consumer electric appliancesbusiness of Sanyo Electric is an important part of Haier’s overall growth strategy,” said Du Jingguo, vice president of Haier Group.

Mitsuru Homma, executive vice president of Sanyo Electric commented: “Through the transfer of our washing machine and consumer refrigerator businesses to the Haier, we will secure employment opportunities of the employees engaged in the businesses and ensure the continuity of the business, and we believe that we are able to offer an unchanged service to our customers in each region.”

Haier expressed that, after the transaction, it would maintain and further strengthen Sanyo’s R&D capabilities, and further invest on expandingproduct lines and market share.

Both parties intend to sign official agreementsbythe endof September 2011. It is business as usual for Haier and Sanyo from now through the completion of the transaction, and there will be a seamless transition in customer service.

Established in 1984, Haier is a multinational consumer electric and home appliances company headquartered in Qingdao, Shandong.  In 2010, its global revenue was $20.7 billion.  Haier Group’s home appliances and consumer electric business cover the research & development, manufacturing and sales of refrigerators, washing machines, air conditioners, water heaters, kitchen appliances, color TV, computers, mobile phones and U-HOME Series products.

Sanyo, a member of the Panasonic Group, is a global company with leading energy and environmental technology and products for commercial and consumer use. Sanyo offers products and services that focus on energy generation, energy storage and efficient energy usage, such as photovoltaic (solar) systems, small- to large-scale-use rechargeable batteries, as well as other energy-efficient products and electronic components that are designed with the environment in mind.