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Panasonic Holdings aims to set up a new supply chain management company and make it publicly traded, the company announced on Wednesday.
The new company is expected to consist of businesses centered around Blue Yonder, a software company that Panasonic acquired in 2021 through an investment of 860 billion yen ($6.6 billion).
The move came after Panasonic transitioned into a holding company in April.
Panasonic will have a majority stake in the newly established company after it is listed. Some expect the market capitalization of the company could reach 1 trillion yen. If it is listed on the stock exchange in Japan, that would be the biggest listing since 2018, when SoftBank Group listed SoftBank Corp. shares on the Tokyo Stock Exchange at 7 trillion yen.
Yuki Kusumi, CEO of Panasonic Holdings, told reporters that supply chain management is a fast-growing business and requires a "timely management decision."
Panasonic aims to make the supply chain management business its pillar of growth. It aims to blend its expertise in sensor technologies and artificial intelligence with Blue Yonder's software and make it more accessible for end users.
To enhance the service, research and development as well as mergers and acquisitions will be necessary. Skilled personnel in the field of AI and information technology is also vital to be competitive.
Panasonic aims to accelerate R&D and talent development by raising funds through the listing. The company said it plans to "aggressively strengthen R&D and invest in M&A," as it believes that investment in the area will be key to meeting the growing demand.