Following rumours that talks for a takeover deal were taking place, Panasonic has confirmed it plans to acquire its smaller tech rival Sanyo.

Although the deal has been confirmed, the financial agreement has not. Analysts suggest the takeover could cost Panasonic around 860 billion yen, roughly around £5.5 billion.

The buy-out will create a $110-billion tech "behemoth", with the takeover said to be the biggest in Japan's consumer electronics sector.

The global operations of both companies are to be combined but officials from both companies have said that Sanyo will be kept as a seperate brand for now.