Panasonic and Sanyo announced on Friday that they plan to discuss the acquisition of Sanyo by the major Japanese manufacturer. Panasonic is interested in Sanyo’s solar energy and rechargeable battery businesses, and that’s because they desperately need another engine of growth. Analysts estimate that this transaction will cost Panasonic about $8.8 billion. It’s no big loss for the company as it would become the largest electronics conglomerate in Japan, knocking off Hitachi from first place, and it would stand second worldwide, after General Electric. It seems that the deal between these Japanese companies is forced by the global economic turmoil.

Sanyo is a world leader in the business of solar power and batteries for electronics and cars, but the estimated price of $8.8 billion could be tricky, and that’s because Sanyo’s share price has risen almost 40% this week. The deal could bring benefits by matching Sanyo’s batteries and solar power technology to Panasonic’s ample funds. On the other hand, Sanyo’s less profitable businesses, including chips, consumer electronics and home appliances, could affect Panasonic’s funds. The merger could help shake up Japan’s crowded electronics industry, because about a dozen electronics firms battle with each other every year, like Hitachi, Panasonic or Sony.

The two companies are related beyond the fact that they both work in the electronics industry. Toshio Iue, founder of Sanyo in 1947, is the brother-in-law of the Panasonic founder Konosuke Matsushita. However, Iue stepped down last year after fighting with the big investors over restructuring. A public update on the progress of the discussions about the acquisition will be made in late December, the two companies’ representatives told the media. The deal between Panasonic and Sanyo would also benefit Goldman Sachs and the two Japanese financial companies that have a combined 70% stake in Sanyo, if their preferred shares are converted into common stock.