Panasonic takes control of Sanyo as it turns to green technology

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.

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
       

Day In a Page

Andrew Mitchell: 'It's no good feeling hard done by'

Andrew Mitchell: 'It's no good feeling hard done by'

In his first interview since 'plebgate', the former Chief Whip opens up just enough to concede that, in politics, you have to take the rough with the smooth
Corruption and the FCO: Blue skies, white sands, dark clouds

Corruption and the FCO: Blue skies, white sands, dark clouds

Special report: Met police call for criminal inquiry into former diplomat's Cayman Islands rule
Fallen angel: Winona Ryder on bouncing back from her decade in the wilderness

Fallen angel: Winona Ryder bounces back

She owned the 1990s... but then she disappeared. Now, Ms Ryder is back with quite the bang in her latest role, as the wife of a notorious real-life Mob hitman.
Roman Polanski shakes Cannes Film Festival

Roman Polanski shakes Cannes Film Festival

The director's new film, 'Venus in Fur', is one of the raciest on offer
Rev Richard Coles: 'I don’t have any concerns that God is cross with me for being gay and eventually the Church won’t either'

Rev Richard Coles on the Church and homosexuality

The mellifluous, erudite and witty Coles is the nation's most pop-culture-friendly priest
'Baghdad likes to live from crisis to crisis': Civil war looms in Iraq

Patrick Cockburn: Civil war looms in Iraq

The governor of Kirkuk - one of the country's most violent but successful provinces - fears the worst
Written on the body: Tattooists at pains to point out their artistic credentials

Written on the body

Tattooists at pains to point out their artistic credentials
Conquering Everest: 60 facts about the world's tallest mountain

Conquering Everest: 60 facts about the world's tallest mountain

The IoS marks the sixtieth anniversary of Sir Edmund Hillary and Tenzing Norgay first reaching the peak of the highest mountain on Earth
A new, and irreversible, Dust Bowl looms

Rupert Cornwell: A new, and irreversible, Dust Bowl looms

The destructive power of tornadoes will be as nothing once the Great Plains' vast underground water reserve dries up
Every creature's needless death diminshes us all

Philip Hoare: Every creature's needless death diminishes us all

A 60 per cent decline in our national species should alarm us, yet few of us act. But to mind more about animals would reflect well on society
Killing with kindness: Burma's religious battleground - and the monks at the heart of it

Killing with kindness: Burma's religious battleground

Six years ago, the world cheered the monks behind Burma’s Saffron Revolution. Now, a horrific new eruption of religious slaughter is being blamed on a 'Buddhist Bin Laden'.
Let's take it outside: Bill Granger's Bank Holiday feast

Let's take it outside: Bill Granger's Bank Holiday feast

You can’t always depend on the weather – but you can avoid the pitfalls of the British barbecue by preparing an elaborate outdoor feast indoors ahead of time...
The Calvin report: Stirring Champions League final shows how far English game must advance

The Calvin report

Stirring Champions League final shows how far English game must advance
10 big questions for the British & Irish Lions to answer

10 big questions for the British & Irish Lions to answer

Warren Gatland's squad fly Down Under aiming to do justice to the expectations – and hoping the Wallabies stay in the pub
The Last Word: Golf must end the hypocrisy before its halo slips totally

The Last Word

Golf must end the hypocrisy before its halo slips totally