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 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...