Matsushita Electric Industrial

Will Panasonic, already the world's largest maker of plasma televisions, become the top electronics company in Japan by revenue?

A successful deal would put it in the top spot.

The heads of Panasonic and Sanyo Electric have agreed in principle to a deal that would see Panasonic take over Sanyo, three people familiar with the matter said Sunday.

After nearly a century of existence, Matsushita Electric Industrial is ditching its founder's name to trade under one name globally -- Panasonic, its best-known brand -- hoping this and an $11 billion reserve of cash will increase its growth outside Japan and help the company compete with rivals like Samsung and Sony.

Expansion overseas is an urgent task for Matsushita, which earns half its revenue from its home base of Japan, where the population is aging. Sony earns more than three quarters of its sales outside Japan, helped in part by its strong brand name.