Panasonic to acquire Sanyo for $9 billion

19 December 2008

Panasonic Corporation has agreed to acquire rival Japanese electronics maker Sanyo Electric for up to 800 billion yen ($9 billion) through a public tender offer after its three major shareholders, including Goldman Sachs, agreed to the takeover, the companies said.

Panasonic Corporation and Sanyo Electric Co Ltd said their respective boards of directors today decided to enter into a capital and business alliance agreement.

Panasonic will aim to acquire the majority of the voting rights of Sanyo assuming full dilution (which takes into account conversion of Class A preferred stock and Class B preferred stock into common stock) by means of a public tender offer bid.

Panasonic said it will commence the tender offer as soon as is practical, subject to, among other conditions, completion of the procedures and the measures that are necessary under domestic and overseas competition laws and regulations. It is expected to take a certain amount of time for the procedures of the regulatory authorities to be completed.

The deal would create one of the world's biggest electronics companies and allow Panasonic to add Sanyo's strengths in green energy - solar panels and rechargeable batteries - to its own huge product portfolio.

Panasonic, which makes Viera TVs and Diga Blu-ray disc players, said last month it was interested in acquiring Sanyo. Sanyo, which has been struggling to turn around its business, also expressed interest in the alliance.