Haier, the Chinese consumer electric and residential appliances company, has acquired the assets of rival Sanyo Electric Co., Ltd. in lots of Asian countries. The 2 companies formalized the deal for an undisclosed amount. With the purchase, Haier hopes to achieve a better manufacturing base.

Under the agreement, Haier will gain control of Sanyo’s washer and refrigerator business in Japan, in addition to use of the Sanyo brand for refrigerators, washing machines, televisions

and air-conditioners in Indonesia, Vietnam, Malaysia, and the Philippines

Panasonic acquired Sanyo in December 2009 and initially bought a controlling stake in Sanyo for $4.5 billion. Sanyo, a number one supplier of rechargeable lithium-ion batteries, became an entirely owned unit early this year.

However, Panasonic, which reported 1.9 billion yen in losses for the primary quarter of this year, looked to dump Sanyo assets to extend revenue.

The agreement also stipulates that Sanyo’s 340 employees in Japan can be transferred to Haier. The corporate didn’t specify about its plans for workers in Southeast Asia. However, it said that it “will respect local cultures and confirm that the degrees of compensation for these employees shouldn’t go under what they were previously receiving.”

“This acquisition isn’t person who simply brings together the resources from Haier and Sanyo, but one which enables us to create a synergy of analysis and development (R&D) and marketing systems by combining the resources of both companies.? That is an opportune time for Haier to reinforce our R&D capabilities and increase first-class, competitive manufacturing bases across Japan and Southeast Asia, in addition to localize our sales and marketing efforts in Southeast Asia,” said Haier Group vice-president Du Jingguo.

The two companies signed a memorandum of understanding (MOU) last July and are expected to finish the transfer of assets by March next year.