Japanese consumer electronics manufacturer Panasonic Corp. announced on Thursday that it has secured a controlling stake in smaller rival Sanyo Electric Co. as part of a $4.6 billion acquisition deal that will fundamentally change Japan’s troubled electronics industry.
The agreement provides Panasonic with access to Sanyo’s eco-friendly technologies, such as rechargeable batteries, a promising sector given the growing concerns about global warming. Panasonic stated that it is purchasing a 50.19% stake in Sanyo for 403.78 billion yen ($4.59 billion), after its offer of 131 yen per share was accepted. Sanyo will thus become a subsidiary of Panasonic under an agreement that will result in the creation of the second-largest electronics manufacturer in Japan, behind Hitachi.
In December 2008, Panasonic announced that it had reached an agreement with major investors, including Goldman Sachs, to acquire a controlling stake in Sanyo and create an industrial giant amid the global economic slowdown. The takeover bid had to be postponed due to regulatory issues and was submitted on November 5. Sanyo agreed to sell part of its rechargeable battery manufacturing business to alleviate concerns related to fair market competition in Japan, China, Europe, and the U.S. (H)
