Sanyo and Panasonic are not considering a tie-up of their operations, the electronics companies said Monday in response to a Japanese newspaper report that they may form a partnership.

The two companies denied a report in the Yomiuri Shimbun daily that said the three largest shareholders of Sanyo were pushing the company are considering selling their stake in the struggling electronics maker to Panasonic. The shareholdings of Sumitomo Mitsui Banking, Goldman Sachs and Daiwa Securities SMBC jointly total 67 percent of Sanyo shares.

Sanyo has recorded losses for the last three years and is currently in the midst of a restructuring that has already seen it dump unprofitable divisions and businesses. The restructuring has had an effect on the company's bottom line and losses have been reduced each year. For the financial year that ended in March the company is expected to report a profit.

Panasonic is due to announce full year financial results later on Monday.