Panasonic Electric Works Completes Power Tools Transfer to Makita

Panasonic Electric Works Co., Ltd. and Makita Corporation have completed the transfer of Panasonic Electric Works’ power tools business to Makita, with all required closing procedures finished as of September 1, 2026, Panasonic Electric Works announced. The closing completes a share transfer agreement covering the business that the two companies reached on March 24, 2026.

Under the completed transaction, all assets, contracts, employees, and other items necessary for the operation of the business were transferred to a successor company that Panasonic Electric Works newly incorporated in April 2026, and all issued shares of that successor company were transferred to Makita. In addition, certain manufacturing and sales functions related to the business held by Panasonic Group’s overseas companies were transferred to Makita’s subsidiaries.

The successor company was incorporated under the name NEXRA Field Works Co., Ltd. Following the transfer to Makita and the completion of the required procedures, it changed its trade name to Makita Industrial Tools Corporation as of September 1, 2026.

Panasonic Electric Works stated that it will continue to increase strategic focus on its solutions business centered on electrical equipment and digital technologies.

Agreement and Acquisition Method

The Electric Works Company of Panasonic Corporation announced the agreement on March 31, 2026, disclosing that it had entered into the share transfer agreement on March 24, 2026. Under the announced structure, the transaction was executed through a company split in which the business was transferred to the newly established successor company, followed by the transfer of all issued shares of the successor company to Makita.

Makita’s own announcement, also dated March 31, 2026, stated that Makita and its group companies had reached an agreement to acquire the power tool business operated by the Electric Works Company of Panasonic Corporation and its group companies. Makita described the acquisition method as the acquisition of all issued shares of a succeeding company to be established through an absorption-type company split, with the new company succeeding the business prior to execution. For overseas locations, Makita and its group companies acquired the relevant portions of the business through asset transfers or other appropriate methods. Makita’s March announcement gave a planned closing date during fiscal year 2026 and stated that execution of the transaction was subject to approvals from the relevant authorities.

Makita’s announcement described the business as covering the development, manufacturing, and sales of power tool products, including factory and construction fastening equipment and factory-related IoT solutions, across Japan and overseas.

Stated Rationale and Business Background

Makita stated that, as a comprehensive manufacturer of power tools, it has developed its business globally with a particular focus on the construction and building markets, and that achieving sustainable growth requires not only strengthening its existing businesses but also securing new growth drivers. Makita stated that the acquired business has earned strong recognition in the factory fastening equipment field, particularly for its advanced torque control technologies and IoT-enabled data management solutions, which it described as highly valued in manufacturing processes where high precision and durability are required. By combining its battery and motor technologies with the fastening and IoT technologies of the business, Makita said it aims to “enter the factory-oriented market in a full-scale manner and create highly value-added solutions,” and that through the integration it seeks to further enhance its corporate value.

Panasonic Electric Works, in its March 2026 announcement, stated that enhancing the competitiveness of the business and achieving further growth amid continued market expansion required sustained investment and a stronger global customer platform. The company stated that, because it is focusing on its solutions business centered on electrical equipment and digital technologies, it faced challenges in making continued investments at the scale and speed required for the further growth of the business. It determined that the optimal path to accelerate growth was to combine Makita’s operational capabilities, including its globally industry-leading customer base, sales and service network, and diverse product portfolio, with the combined technological strengths of both companies, and accordingly decided to divest the business to Makita.

According to Panasonic’s March 2026 announcement, the Electric Works Company had been in the power tools business for more than 45 years, since 1979. It launched Japan’s first cordless power tool in 1979, released the first impact driver equipped with a brushless motor in 2004, an impact driver with a torque control function in 2008, and a torque measurement impact wrench in 2021. In recent years, the announcement stated, the business focused on the electrical construction market while expanding into the assembly and manufacturing line market, developing power tool solutions globally across both markets.

Reference materials in the March 2026 announcement reported consolidated revenue of 1,071.5 billion yen for the Electric Works Company and 753.1 billion yen for Makita, each for the fiscal year ended March 31, 2025, and consolidated employee counts of about 31,000 and about 17,000, respectively. Makita was incorporated on December 10, 1938, while the Electric Works Company traces its incorporation to March 7, 1918, as Matsushita Electric Housewares Manufacturing Works.

Panasonic Electric Works is headquartered in Kadoma, Osaka, with a Tokyo office in Minato-ku, and is led by Representative Director, President and Chief Executive Officer Kiyoshi Otaki. Its business covers the production and sales of electrical equipment, lighting products, energy-related devices, and solutions for buildings. Makita is headquartered in Anjo, Aichi, and led by President Munetoshi Goto, with a business covering the production and sales of electric power tools, gardening equipment, pneumatic tools, and household equipment.

The Panasonic Group, founded in 1918, consists of Panasonic Holdings Corporation, seven operating companies, and affiliates in Japan and overseas. Panasonic Holdings Corporation reported consolidated net sales of 8,048.7 billion yen for the year ended March 31, 2026.