Sanyo Electric was founded by a former director of Panasonic in a disused Panasonic factory in 1947. Now, if the two companies can reach a final agreement, Sanyo’s independent life will end in a takeover by Panasonic that may result in more disused factories and more consolidation in Japan’s fragmented electronics industry.

A deal would add Sanyo’s Y2,000bn ($20.1bn) in sales to Panasonic’s Y9,000bn to create the largest electronics company in Japan. It would be exceptional in many ways: a rare outright takeover in Japan and the first merger of large Japanese electronics manufacturers in recent memory.