Philips Sells Interest in Battery Manufacturing to Matsushita

Royal Philips Electronics (Eindhoven, Netherlands) has sold its last remaining interest in battery manufacturing to its joint venture partner Matsushita Battery Industry (Japan) for approximately $41 million, subject to regulatory approvals. The company said that it had entered into a final agreement to sell its remaining 50 percent stake in battery-manufacturing joint ventures in Belgium and Poland.

Philips will transfer its battery sales and marketing activities to form part of its accessories and recordable media business group. The company said the sale comes in response to changes in the battery market and cited the globalization and consolidation of large retailers, continuous price erosion, fast growth of private labels and changing distribution patterns as primary factors in the decision.