Sanyo Acquisition Complete

• By Ralph C. Jensen
• Dec 21, 2009

Panasonic Corp. announced Monday, Dec. 21, that it has taken majority control of Sanyo Electric Co., forming one of the world’s largest electronics manufacturers.

In a deal previously announced at $4.6 billion, Panasonic received preferred shares of Sanyo giving it a 50.27 percent ownership stake in the company.

Ownership of Sanyo will give Panasonic access to advanced solar panel and rechargeable battery technology, but Panasonic officials also will have to find a way to bring profitability back to Sanyo, which recorded a net loss of 30.6 billion yen ($338 million) between April and September 2009.

The Sanyo brand name will stay in place, and the company will keep its shares listed on the Tokyo Stock Exchange.

Panasonic wanted a bigger share and controlling interest in Sanyo, but settled for a minimum controlling stake with some shareholders unwilling to sell at a tender offer that was lower than the market price. The deal was delayed for months while both companies waited for clearance from worldwide anti-monopoly authorities.

News of the completed sale on Monday boosted Sanyo shares by 2.4 percent to 174 yen, while Panasonic fell 0.3 percent to 1,281 yen.