Panasonic to take control of Sanyo
Friday, 19 December 2008 08:08Japanese electronics group Panasonic has cleared the way to buy struggling Sanyo for up to $9 billion.
The deal is the first major realignment of Japan's electronics industry since the start of the economic crisis, which has led companies to suspend production as consumer demand dried up.
Panasonic said it would launch a tender offer aiming to secure a 70.5% stake in Sanyo, which has been slashing thousands of jobs as it tries to return to profit.
Panasonic said it had reached a deal to buy the shares after investment group Goldman Sachs and others agreed to sell their holdings.
In a joint statement, Panasonic and Sanyo said that the companies had to take 'drastic action' to boost revenue and growth in the midst of the financial crisis and intensifying global competition.
Sanyo, which started off making bicycle lamps after World War II, has recently tried to focus on environmental technologies including solar energy and rechargeable batteries. Sanyo has had a troubled few years, issuing new shares bought by Goldman Sachs and other financial firms in a bid to raise money.
