Panasonic Corp. has announced that it will take majority control of Sanyo Electric Co. in a US$4.6 billion deal where Panasonic said it will buy 50.2 per cent of Sanyo for 403.78 billion yen ($4.6 billion) after closing its five-week tender offer which began on the 5th November. Panasonic, the world's biggest plasma TV maker, will pay 131 yen per share of Sanyo, the world's largest maker of rechargeable batteries.
With the purchase, Panasonic can draw upon Sanyo's expertise in solar panels and rechargeable batteries, making the company a major player in the hybrid car battery market and boosting its resources in the race to develop environmental technologies.
Sanyo's three major shareholders - Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Group - had earlier agreed to sell at least a combined 3.07 billion shares to Panasonic, these three shareholders together control about 70 per cent of Sanyo's total outstanding shares.
Panasonic had reportedly hoped to take a larger stake in Sanyo, but the company had to settle with a minimum controlling stake. 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.
Panasonic is expected to retain the Sanyo brand and keep its shares listed on the Tokyo Stock Exchange.
