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Panasonic eyes Sanyo to create new clean tech giant
By siliconindia
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Monday, 09 November 2009, 18:14 IST |
1 Comments
Osaka (Japan): In an attempt to create a new clean tech powerhouse, electronics major Panasonic is offering $4.5 billion to secure majority stake in its rival Sanyo. Through this deal, Panasonic is planning to take advantage of Sanyo's expertise in the rapidly expanding 'green' businesses such as solar panels and rechargeable batteries.
Sanyo is a global supplier of rechargeable batteries for laptops, camera and other gadgets and its clients in the car industry include Honda, Ford and Peugeot Citroen. Panasonic, meanwhile, is jointly developing batteries for hybrid and electric cars with Toyota. By combining their prowess in solar and fuel cells, the Panasonic-Sanyo alliance is expected to tap into the growing market for green energy storage and production.
Panasonic said the 131 Yen per share offer would stay open until December 7, 2009. However, despite the bid being nearly half Sanyo's current share price, prospects for a deal look good with the company's three major shareholders - Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Banking - all confirming they would sell their stakes at the offered price.
Sanyo's Executive Vice President, Mitsuru Honma, also told Reuters that he regarded the offer as a reasonable price. Panasonic is expected to end up with a majority stake of 70 percent in its former rival, with smaller shareholders retaining a 30 percent stake. The deal, which is expected to receive regulatory approval from anti-competition bodies in the coming months, is likely to reshape a large number of clean tech markets.
