A takeover would represent the first merger between two of Japan's big consumer electronics groups, creating a combined company with more than Y11,000bn ($111.5bn) in revenues. It is also expected to put pressure on rivals to strengthen their core businesses.

Panasonic, which is believed to have won the consent of Sanyo management for a takeover bid, is expected to start discussions shortly with Sanyo's major shareholders – Goldman Sachs, Sumitomo Mitsui Bank and Daiwa Securities, which together hold preference shares in Sanyo representing a stake of about 70 per cent.

Meanwhile, Panasonic's move comes as Fujitsu is poised to take control of Fujitsu Siemens Computer Holding, its joint venture with Siemens, by buying the German group's 50 per cent stake in their European personal computer business.