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Matsushita, Sanyo deny merger reports

Panasonic maker Matsushita Electric Industrial Co and Sanyo Electric Co both denied a report that they may consider a business and capital tie-up or a merger.

The Japanese Yomiuri newspaper reported that a plan had been prepared for business and capital links between the two companies and they could merge in the future.

“It is not true that a tie-up with Sanyo is now under consideration,” Matsushita spokesman Akira Kadota said in a brief statement to the Tokyo Stock Exchange.

Sanyo spokesman Hiroshi Tsuchiya also said the report was not true, adding there was no ongoing tie-up talks with Matsushita or any other companies.

But if the consolidation was achieved, as the newspaper reported, it would create Japan's largest electronics maker with sales of ¥11.3 trillion ($101.8 billion), surpassing Hitachi Ltd., which has annual sales of ¥10 trillion.

After the report, Sanyo leapt 9.2% on the Tokyo Stock Exchange, the highest since June 6, 2006. Matsushita rose 1.2%, above a 0.9% rise in the benchmark Nikkei stock average. (Xinhua)