Sony has been shedding elements of its core business at a steady pace in an effort to return to profitability. On Thursday, the Japanese electronics giant announced intentions to part ways with yet another major division.
Murata Manufacturing Co. has entered into a non-binding memorandum of understanding (a fancy term for an agreement that isn’t legally-binding) with Sony to purchase its battery business. In a mutual press release issued earlier today, Murata said it still needs to perform due diligence and negotiate terms and conditions of the deal.
That said, the deal is expected to include the battery business conducted by Sony Energy Devices Corporation, a wholly-owned subsidiary of Sony’s in Japan, the company’s battery-related manufacturing operations in Singapore and China plus assets and personnel assigned to the battery business within Sony’s sales and R&D sites around the globe.
As Engadget highlights, Sony started its battery business in 1975 and was the first company to commercialize lithium-ion batteries in 1991. The battery arm has served Sony well over the years yet as of late, it’s been a drain. Last year, it cost the company $270 million.
Murata said it intends to position the battery business as a core operation within its energy business in order to target further business growth and expansion.
Barring any unforeseen circumstances, the two expect to have a binding agreement in place by mid-October of this year and wrap up the transfer by the end of March 2017 pending regulatory approval.
Image courtesy Kim Kyung Hoon, Reuters