On March 24, 2026, Electric Works Company, a division of Panasonic Corp., announced that it had signed a share transfer agreement to move its power tools business to a successor company that it had just set up. It then planned to give all of that company’s shares to Makita Corporation – Makita. The Company made the announcement on March 31, 2026, because it had finished all the necessary preparations.
The deal will happen through a company split, in which the power tools business will be given to the successor company, and then all of the successor company’s shares will be given to the buyer. The successor company will get the assets, contracts, and employees, in addition to the resources it needs to run the business.
Also, some of the power tools business’s manufacturing and sales tasks, including those owned by Panasonic Group’s overseas companies, will be moved to Makita’s subsidiaries.
Electric Works Company, the division of Panasonic Corp. has been in the power tools business for more than 45 years, since it was founded in 1979. The company has changed the way professionals work by developing its own technologies. For example, in 1979, it launched Japan’s first cordless power tool. In 2004, it released the first impact driver with a brushless motor, in 2008, it released an impact driver with a torque control function, and in 2021, it released a torque measurement impact wrench. The power tools business has mostly focused on the electrical construction market in the past few years, but it has also moved into the assembly and manufacturing line market. The company has been making power tool solutions for both markets around the world, which has directly made operators’ jobs easier.
To make the power tools business more competitive and help it grow even more as the market continues to grow, it is important to keep investing and make the global customer platform stronger. The Company is focusing on its solutions business, which is based on electrical equipment and digital technologies. However, it is having trouble making the investments needed for the power tools business to keep growing at the scale and speed it needs. Given these circumstances, Electric Works Company has decided that the best way to speed up the growth of the power tools business is to combine Makita’s operational strengths, such as its world-class customer base, sales and service network, and wide range of products, with the combined share transfer agreement of both companies. So, Electric Works Company has chosen to sell the power tools business to Makita.
Electric Works Company plans to finish setting up the new company, moving the power tools business, and transferring the shares by the end of the fiscal year 2027, on March 31, 2027. After that, operations will start under the new structure.