Business

Panasonic to Rescue Scandal- Hit Olympus with $630 Mil.
By wchung | 08 Jun, 2026

Panasonic Corp. has agreed to provide up to ¥50 billion ($630 mil.) to rescue scandal-ridden Olympus Corp. and become its biggest shareholder, according to inside sources Tuesday.

Panasonic hopes the tieup will help it shift its focus from its struggling consumer electronics business toward the more profitable medical equipment business in which Olympus is a major player. Panasonic’s TV sales have suffered in recent years due to competition from S. Korea’s Samsung and LG aims, forcing it to look to the medical equipment business for growth.

Olympus shares have plummeted since the company’s image was devastated last year after its board members were implicated in shady dealings designed to cover up huge losses while transferring millions of dollars to a small consulting firm with secret ties to the board.

The correction in December of Olympus’ past earnings statements and re-evaluation of assets caused its consolidated capital adequacy ratio to fall to 4.6% at the end of March from 11% stated a year earlier.

Olympus will issue shares to Panasonic in a private offering for somewhere between ¥30 billion ($380 mil.) and ¥50 billion ($630 mil.). Olympus plans to use the money to clear up its financial statements and to restructure its business to better reflect its current market conditions.

Panasonic hopes to expand its health care systems product lineup and become a supplier to Olympus for image sensors and high resolution monitors for gastrointestinal endoscopes, an area in which Olympus controls around 70% of the global market.

Both companies also produce and sell digital cameras.

Among steps to be taken by Olympus include cutting over 2,500 jobs and consolidating various plants. Such measures require an infusion of capital.

Olympus resisted overtures from Sony Corp., Fujifilm Holdings Corp. and Terumo Corp. in favor of Olympus to avoid losing operating control to key rivals as well as to realize efficiencies in its imaging business through cooperation with Panasonic.