Feb 20, 2001 Philips Lighting BV announces that it has entered into a final agreement to sell its 50% ownership of the battery manufacturing joint ventures PMBC (Philips Matsushita Battery Corporation) in Belgium and PMBP (Philips Matsushita Batteries Poland) in Poland to Matsushita Battery Industry, its joint venture partner, for EUR 42 million. The agreement is subject to regulatory approvals.
The battery marketing and sales activities of Philips will be continued, and transferred internally from the Product Division Lighting to the Product Division Consumer Electronics, forming part of the Business Group Accessories & Recordable Media.
These measures are a response to changing conditions in the battery market, particularly in Europe; globalization and consolidation of large retailers, continuous price erosion, fast growth of private labels and changing distribution. The new structure will allow synergies in distribution, combined with increased flexibility in a line of business that is complementary to Philips Consumer Electronics.
