Panasonic buying Sanyo and Panasonic Electric for $9.4 billion

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The world's one of the biggest electronic company Japan's Panasonic Corp, offered to buy out Sanyo Electric Co. and Panasonic Electric Works Co. for $9.4 billion or 818.4 billion yen.

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Fri, Jul 30, 2010 01:47:21 IST

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World Business News :

THE WORLD’S one of the biggest electronic company, Japan's Panasonic Corp, offered to buy out Sanyo Electric Co. and Panasonic Electric Works Co. for $9.4 billion or 818.4 billion yen. The move could result in the two Companies merging their operations.

Fumio Ohtsubo, president of Panasonic Corp., Seiichiro Sano, president of Sanyo Electric Co., and Shusaku Nagae, president of Panasonic Electric Works Co., announced about the deal at their joint news conference in Osaka, Japan on Thursday July 29.

Shareholders of Sanyo and Panasonic Electric Works have the option of accepting the parent’s offer or taking Panasonic shares. On Thursday, Panasonic posted an operating profit of 83.84 billion yen for the quarter, compared with an operating loss of 20.18 billion yen a year earlier.

Panasonic, which makes Viera TVs and Lumix digital cameras, will pay 138 yen per Sanyo Electric share and 1,110 yen per Panasonic Electric Works share. According to the company sources, the tender offer will take place between August 23 and October 6.

Panasonic bought the controlling stake of 50.5 percent in Sanyo, the world's largest maker of rechargeable lithium ion batteries and solar panels in December 2009 for about $4 billion. It also owns 51 percent of Panasonic Electric Works, which makes lighting equipment, sensors and other components.

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