Panasonic to acquire Sanyo stake from Goldman Sachs, Daiwa, Sumitomo Mitsui for ¥131

18 December 2008

Panasonic is considering buying out three major Sanyo Electric Co shareholders who have agreed to sell each Sanyo share for ¥131 ($1.49 / Rs70.74) through a tender offer.

Panasonic's will pay over ¥60 billion to acquire the 70 per cent total preferred share of Sanyo held by the three major shareholders Daiwa Securities SMBC Co, Goldman Sachs Group Inc and Sumitomo Mitsui Banking Corp. in Sanyo Electric Co.

The merger between Panasonic, the world's biggest plasma TV maker and Sanyo, the top producer of rechargeable batteries, would make Panasonic the second largest electronics manufacturer after Hitachi Ltd.

Goldman Sachs had rejected an initial offer of ¥120 a share as too low, and in early December again rejected the increased offer from Panasonic of ¥30 for its 29 per cent stake in Sanyo Electric Co.

Goldman Sachs reported a huge third quarter loss, amidst plummeting consumer goods sale in the backdrop of the global economic crisis and recession in major global markets may have prompted them to sell the stake to Panasonic to shore up their funds. (See: Goldman Sachs reports first quarterly loss since 1999)

Japanese electronics group Panasonic after months of failed negotiating to acquire stake in Sanyo, a major manufacturer of solar cells and rechargeable batteries is set become Japan's biggest consumer-electronics company. (See: Panasonic in talks to acquire its rival, Sanyo and See: Panasonic looking to acquire Sanyo to create Japan's largest electronics company)