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Acquisition Deal to Create Japan's Largest Electronics Maker

According to a Nikkei Net article, Panasonic Corp. has agreed in principle to buy Sanyo Electric Co. in a deal that would create Japan's largest electronics company.

Panasonic plans to purchase a majority stake in Sanyo and convert it into a subsidiary by next April under an agreement reached by Panasonic President Fumio Ohtsubo and Sanyo President, Seiichiro Sano.

The two companies are to planning to hold board meetings as early as Friday, and a news conference will be held that day to announce the first merger and acquisition deal between two major Japanese electronics manufacturers.

Panasonic plans to keep the Sanyo brand after the acquisition and will attempt to keep the Sanyo’s employees, but Sanyo will be asked to hasten its restructuring efforts to improve its earnings structure.

Panasonic will start evaluating Sanyo assets immediately and is expected to enter into talks as early as this week with the Sanyo’s three major shareholders, Sumitomo Mitsui Banking Corp., the Daiwa Securities SMBC Co. group, and Goldman Sachs Group Inc.

If the 428 million preferred shares held by the three shareholders are converted to common stock, Panasonic's stake in Sanyo would amount to 70% which has a value of about 620 billion Yen based on Sanyo's current stock price. Panasonic plans to convert the preferred shares into common stock. Early agreement does not ensure the acquisition deal is a sure thing as there is a possibility the major shareholders may disagree over how to proceed with the sale of their preferred shares.

Sanyo’s strengths are its solar cells and its rechargeable batteries such as the Eneloop brand. Panasonic will be able to expand on its battery business, which is seen as an area with growth potential.

The combined projected sales of Panasonic and Sanyo for the year ending March 31, 2009, amount to roughly 11.22 trillion Yen, surpassing the 10.9 trillion Yen sales estimate for Hitachi Ltd. the leading electrical machinery maker in Japan.

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it's too late...
By inperfectdarkness on 11/3/2008 8:27:09 AM , Rating: 2
sanyo already sold off their cell phone arm to kyocera. yes, that worst-cell-phones-ever-sold kyocera. sanyo phones used to be JD-P highest rated phones in the industry.

panasonic gets the leftovers. i hope matsushita actually benefits from this.




RE: it's too late...
By santa590 on 11/3/2008 9:17:46 AM , Rating: 3
I believe Sanyo still leads the market in lithium-ion batteries, and have a good market in the solar panel business also.


RE: it's too late...
By FITCamaro on 11/3/2008 9:32:15 AM , Rating: 2
Agreed about Sanyo phones. When I worked for Sprint they were the best phones we had. Maybe not as cool looking as some of the Samsung ones but the batteries lasted a long time and the signal strength was far better. You know. Things important for a PHONE.


RE: it's too late...
By rupaniii on 11/3/2008 11:27:40 AM , Rating: 2
Ehw, i had no idea.
Yeah, i guess it's the industrial stuff that's important.
I'm sure Goldman Sachs will be happy to get some money.
That Yen is worth alot more now.


Panasonic + Sanyo = ?!
By Chipper Smoltz DT on 11/3/2008 11:01:43 AM , Rating: 2
Panasonic - manufactures TV sets + Sanyo - manufactures rechargeable batteries = Possibilities

Possibilities of the Merger:
1. Creation of a Portable Handheld Wireless TV using the TV tech of Panasonic and Battery tech of Sanyo
2. Creation of a TV that has a built-in rechargeable battery charger
3. Just a case of the "big fish" gobbling up the "smaller one" hahaha =))

Here's another possiblity:
After the merger - Sony acquires Panasonic or Panasonic acquires Sony

Possibilities for the Merger:
1. Cellphone with built in Wireless TV
2. Wireless Karaoke Machine hahaha (^_^)

Sorry, I meant no disrespect to any Japanese people that will be reading this. Just that the merger opens up some possibilities for inventions that could become profitable in the future. Although my suggestions are novelties, I believe some could be real nice to have...it's only me though. Domo Arigato Gozhaimasu




RE: Panasonic + Sanyo = ?!
By berkes on 11/3/2008 4:02:01 PM , Rating: 2
Hum , i do believe Panasonic does a lot more than just TV sets ... (Laptops,phones,tv,recorders,and lots of stange electronic gadgets and im sure im missing lots more )


...can't be for the brand...
By Motoman on 11/3/2008 9:55:51 AM , Rating: 2
I would have to believe that Pana sees something else in the Sanyo purchase than the "value" of the brand.

...they've got their own name, Technics, and a few others. I don't see "Sanyo" as being all that more important over those brands.

Maybe it's the batteries or something else. Do they need additional manufacturing capacity...or people?




By Guyver on 11/3/2008 9:56:35 AM , Rating: 2
I thought Panasonic already was the largest consumer electronics company in Japan / World... unless some people are counting Sony and the music and movie business they have also become / acquired.




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