Asia-Pacific

Panasonic gains controlling stake in Sanyo

(Xinhua)
Updated: 2009-12-10 16:06

TOKYO: Japanese electronics giant Panasonic Corp. said on Thursday that it has acquired a 50.19 percent controlling stake in Sanyo, in a deal worth 403.8 billion yen ($4.6 billion).

The bid gives Panasonic control of the world's largest rechargeable battery maker, and makes the company into a major player in the growing hybrid car battery market.

The deal was expected to go through, because major shareholders such as Daiwa Securities, Goldman Sachs and the Sumitomo-Mitsui group had all signalled a willingness to sell their shares to Panasonic.

Panasonic is expected to make Sanyo into a subsidiary later this month, which will make it Japan's second-largest electronics company after Sony.

The company is now expected to work with Sanyo on energy technology, with the global economy now focusing more and more on energy efficiency as concerns about climate change grow.

Panasonic made a tender offer for Sanyo last month, offering to pay 131 yen per share in the company. After news that a deal between the companies had been reached broke, Sanyo shares rose by more than 6 percent to 169 yen.

Panasonic has aimed to acquire Sanyo since last year, but with many nations questioning whether the deal would violate fair trade practices, there have been hurdles along the way.

Before April next year, Panasonic is expected to announce a new business plan, which will focus on energy as a major part of its future operations. Sanyo is expected to have to cut jobs once it becomes a subsidiary.