Comprehensive M&A data with integrated detailed company information

Panasonic, Toyota establish town development venture
Posted on Friday, 10 May 2019 11:42
Panasonic and Toyota Motor are establishing a 50:50 joint venture to develop connected technology for homes and urban developments to spearhead initiatives and growth in the intensively competitive housing market. While the two partners have signed off on the agreement, they have also concluded a memorandum of understanding with Mitsui, which may or may not include the possibility of the trading giant’s equity participation. Panasonic and Toyota are combining their respective housing businesses in order to better achieve growth by making use of the strengths of both companies in the field of real estate transaction and management. The two are aiming to establish Prime Life Technologies by January 2020 to focus on urban development, remodelling, interior decoration, contracted building construction and consultation. However, the Tokyo-headquartered venture will also bring together the former’s lifestyle and the latter’s mobility initiatives to corner the smart home and town markets. A rapid change in the field is expected due to the accelerated deployment of Internet of Things for connected home appliances and equipment, not to mention the evolution in mobility. This includes the advancement of connected, autonomous, shares and electric (CASE) technology and of concepts that provide car, rental bike and public transportation services via the Internet. With regards to combining the respective housing businesses, Panasonic will transfer Panasonic Homes, Panasonic Construction Engineering and Matsumura-gumi to the joint venture. In the meantime, Toyota Housing will acquire the 49.0 per cent not already held in listed Misawa Homes by conducting a so-called triangular share exchange, following which it will be handed over to Prime Life. Toyota president Akio Toyoda said: “From here on out, information will link all items and services that support people’s daily lives thanks to the development of CASE.” He added that “considering this from a broad, community-level and society-level perspective that includes cars”, the concept of connected cities will become important. © Zephus Ltd