Panasonic CEO Says Considering White Goods M&A in Europe

Japanese electronics conglomerate Panasonic Corp is considering M&A deals as a way to bolster its position in the European white goods market, its chief executive said on Monday.

"We need a partner who understands the European market in the white goods segment," CEO Kazuhiro Tsuga, credited for leading the company's turnaround in the past few years, told Reuters in an interview.

Asked whether that meant a possible acquisition, he said: "I wouldn't ruled that out. That's currently under consideration."

After returning to a net cash positive position last quarter for the first time in five years, the company is now targeting JPY 10 trillion ($90 billion) in revenue in 2018/19 compared with a planned JPY 7.75 trillion in the current year.

It has said it would not be able to achieve that sales target through organic growth alone and that it would consider acquisitions, but Tsuga ruled out large deals.

"We have no intention to buy a big company worth a trillion yen, for example," he said. Companies worth tens of billions, he said, would be reasonable acquisition targets.

© Thomson Reuters 2014