Panasonic Corp, a Japanese consumer electronics company announced to buy as much as 13% of Gorenje. The latter is one of the largest household appliance makers in Eastern Europe. The Japanese firm is focused to tap a growing demand for consumer electronics demand in the region.

Panasonic decided to pull away from unprofitable consumer electronics. The company wanted to be number one in appliances and is competing against companies like Whirlpool Corp and Electrolux. The Japanese firm also wanted to tap growing markets in Europe particularly in Russia.

The acquisition deal with Gorenje was priced at Eur10 million. Gorenje manufactures energy efficient appliances under multiple brand names. The company sells its products to emerging markets in Europe across 90 countries. Gorenje also exports 95% of its output globally.

Panasonic and Gorenje agreed to engage in a joint research for the development of washing machines, refrigerators and built in ovens. The two companies also agreed to cooperate in sales and marketing throughout the European markets. Panasonic would buy Gorenje at Eur4.31 per share piece while the size of the stake bought would depend on the rise in share capital. The share capital would be carried out by shareholders at Gorenje in the coming months.