Oct. 29--OSAKA -- Panasonic Corp. plans to reduce its equity stake in a battery joint venture with Toyota Motor Corp. for hybrid vehicles to expedite its move to turn Sanyo Electric Co. into a subsidiary, sources close to the matter said Thursday.

Panasonic believes such a measure, aimed at slashing its share of the global nickel-hydrogen battery market, is necessary to obtain foreign antitrust authorities' approval of its plan for Sanyo soon, the sources added. Sanyo has a high share in the market.

Panasonic is expected to cut its equity stake in Panasonic EV Energy Co. to less than 20 percent from the current 40 percent, a move that will see the joint venture delisted from Panasonic's equity method affiliate, the sources said.

The Shizuoka Prefecture-based joint venture, owned 60 percent by Toyota, makes batteries including nickel-hydrogen cells to power plug-in electric and gasoline-electric hybrid vehicles.

China, which is due to complete its study of the proposed deal between Panasonic and Sanyo by next Tuesday, will likely give them the green light if Panasonic trims its investment in the battery venture, the sources said.

After it becomes certain that the United States will also approve the plan, Panasonic will proceed to launch a tender offer for Sanyo shares.

In a related development, Sanyo said Wednesday it will sell two battery-making subsidiaries -- Sanyo Energy Twicell Co. and Sanyo Energy Tottori Co. -- to FDK Corp., a unit of Fujitsu Ltd.

Panasonic's plan to take over Sanyo has been stalled due to delays in clearing the screenings by competition policy watchdogs in the United States and China on concern about the two firms' considerable combined presence in the global nickel-hydrogen battery business.

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