Sanyo to Become Holding Company Jan 30, 2003

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Sanyo Electric Co, Japan's third-largest consumer electronics maker, plans to adopt a holding company structure by the spring of 2004 to better combat rising competition, the Nihon Keizai Shimbun said.

The Tokyo Stock Exchange said it had halted trade in Sanyo shares to investigate the report.

The newspaper said Sanyo would spin off its audiovisual equipment and other operations as wholly owned subsidiaries as part of the move, aimed at enhancing the Sanyo group's flexibility and better positioning the firm amid tough competition from China and other low-cost manufacturing centres.

Sanyo plans to set up wholly owned units based on its five existing in-house companies, the Nihon Keizai said.

The holding company, which will continue to be publicly traded, will handle accounting and administrative affairs and be responsible for group-wide strategies, the paper said. (Reuters)

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