Panasonic to buy 13% stake in Slovenian company Gorenje

LJUBLJANA: Japanese electronics giant Panasonic will buy a minority stake in Slovenian household appliance maker Gorenje in a bid to boost business in European emerging markets, Gorenje announced Friday.

The deal, which includes an initial investment of 10 million euros ($12.9 million) by Panasonic, will also cover research and shared product platforms across the two brands.

Among other things, the two partners will jointly develop new washing machines for Europe, while Gorenje will manufacture Panasonic fridges for the EU, Russia and other former Soviet states.

Gorenje, Slovenia's largest household appliances producer and a leading player in Eastern Europe, has sufferedthe global crisis with net profit falling to 3,00,000 euros in 2012.

The two companies were to create a "long-term strategic alliance," with Panasonic acquiring 13% of Gorenje for 10 million euros, the Slovenian firm said in a statement. 

Laurent Abadie, CEO of Panasonic Europe said the move "will propel both organizations to new strengths within the European home appliance market."

Gorenje's head Franjo Bobinac called it a "historical milestone for Gorenje.