Panasonic takes control of Sanyo as it turns to green technology
Friday 11 December 2009
Panasonic has secured a controlling stake in Sanyo, its Japanese rival, strengthening its position in the growing market for environmentally friendly technologies.
The deal hands Panasonic, the world's largest plasma TV manufacturer, a 50.2 per cent stake in Sanyo, the world's biggest maker of rechargeable batteries. Panasonic paid ¥403.8bn (£2.8bn) via a tender offer, which was widely expected to succeed as Sanyo's leading institutional shareholders, Goldman Sachs, Sumitomo Mitsui Banking Corp and Daiwa Securities, had agreed to sell their holdings. The transaction was delayed as Panasonic sought regulatory clearance from competition authorities around the world.
The move offers a lifeline to Sanyo, which was forced to raise billions of dollars in funds in 2006. The recent slump has also been hard to bear, with Sanyo, which has agreed to sell some its manufacturing operations to allay regulatory concerns, coming under pressure from the strength in the yen.
The company has been investing heavily in green technologies, selling hybrid batteries to customers such as Honda, Ford Motor Company and PSA Peugeot Citroën. The deal makes Panasonic, which runs a hybrid and electric car battery joint venture with Toyota, a dominant force in the hybrid battery market. Sanyo is also a major player in the solar cell market, offering Panasonic, which makes fuel cells, an opportunity to enhance its offering of alternative energy products.
Panasonic first revealed its interest in Sanyo in late 2008 as it sought to form an electronics heavyweight as the world economy slowed.
The company, which was sitting on ¥1.46 trillion of cash and cash equivalent at the end of September, has faced growing competition in the television market, battling with the likes of South Korea's Samsung.
Panasonic launched its tender offer in November. Sanyo's shares were trading at a premium to its ¥131 offer price, but, given the agreement of the three institutional shareholders, the deal proceeded as planned.
Goldman, Daiwa and Sumitomo had moved in three years ago when Sanyo issued ¥300bn preferred stock at ¥700 apiece. The three will book a hefty profit as each preferred stock can be exchanged for 10 common shares.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 The day I starred in Only Fools and Horses
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...