That's an example of 'overcapacity' and 'product/market' M&A. Interesting to note that the statement of intention is signed by both CEO's and refers to synergies.
Panasonic aims to take over Sanyo
Japanese electronic rivals Panasonic and Sanyo are starting alliance talks, which could result in Panasonic taking over the smaller company.
Panasonic said it wanted to make Sanyo its subsidiary, effectively creating Japan's largest electronics maker.
Read the whole article at: http://news.bbc.co.uk/1/hi/business/7714994.stm