TOKYO, Japan (AFP) — Japanese electronics giant Panasonic said Tuesday it will stop serving as a major sponsor of the Olympics and Paralympics, citing “management considerations”.

The company said it agreed with the International Olympic Committee (IOC) not to extend their sponsorship agreement when the current contract expires in December.

Panasonic became an “official Worldwide Partner of the Olympic Games” in 1987 and expanded its sponsorship to the Paralympics from 2014, the firm said in a statement.

But it decided to let the contract expire “as the group continually reviews how sponsorship should evolve with broader management considerations”.

“As a result of this review, and after extensive consultation with the IOC, the parties agreed to refrain from renewing the Olympic and Paralympic Partner Agreement,” Panasonic said without offering details.

The decision comes as the company puts more focus on vehicle-related products like batteries for electric vehicles, although consumer electronics remain its core business area.

“The IOC understands and fully respects that the Panasonic Group has to adapt its business strategy,” IOC President Thomas Bach said in the Panasonic statement.

“Therefore, this partnership is ending in a respectful and friendly way,” he said.