Global Sources
EE Times-India
Stay in touch with EE Times India
 
 
Manufacturing/Packaging  

Panasonic, Sanyo deal sealed

Posted: 23 Dec 2008  Print Version  Bookmark and Share

Keywords:consumer electronics  solar cells  rechargeable batteries  solar panel 

Goldman Sachs has finally sold its stake in Sanyo Electric Co. to Japanese electronics conglomerate Panasonic Corp., clearing the way for Japan's largest consumer electronics acquisition.

Panasonic will now control just over 70 per cent of the shares in Sanyo. The deal, confirmed Dec. 19 values Sanyo at Rs.40,283.83 crore (Y807 billion) and will increase revenues at Panasonic by 20 per cent to Rs.549,098.00 crore (Y11,000 billion).

The deal is not focused on either company's traditional product lines but rather on solar cells and rechargeable batteries for hybrid and electric cars. The companies said they hope to collaborate on tapping the growing market for these.

The deal will also allow Panasonic to immediately enter the solar panel business. Goldman had rejected two previous Panasonic bids and last month briefly walked away from negotiations, but it ultimately accepted a deal close to the Japanese company's terms of Rs.65.39 (Y131) per share.

Executives at Panasonic and Sanyo endorsed the proposed acquisition last month and Sumitomo and Daiwa, two other significant shareholders, have also been pushing for a deal. But Goldman and Panasonic struggled to bridge a wide gap in their valuation of Sanyo.

Panasonic initially offered Rs.59.90 (Y120) a share, and Goldman suspended talks after rejecting a second offer of Rs.64.89 (Y130) a share. Its brinkmanship does not appear to have rattled Panasonic executives.

Panasonic was forced to slash its operating profit forecast by 40 per cent late last month amid stiffening competition and slower sales.

- John Walko
EE Times Europe





Comment on "Panasonic, Sanyo deal sealed"
Comments:  
*  You can enter [0] more charecters.
*Verify code:
 
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

 

Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

 
Back to Top