Panasonic Corp said today it will take majority control of Sanyo Electric Co in a $4.6 billion deal, forging one of the biggest electronics makers in the world with an edge in green technologies.
Panasonic said it will buy 50.2 per cent of Sanyo for 403.78 billion yen ($4.6 billion) after closing its five-week tender offer that began on November 5. The world's biggest plasma TV maker will pay 131 yen per Sanyo share./p>
With the purchase, Panasonic can draw upon Sanyo's expertise in solar panels and rechargeable batteries, bolstering its resources in the race to develop environmental technologies.
Sanyo's three major shareholders -- Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Banking Corp -- helped propel the deal after agreeing to sell at least a combined 3.07 billion shares to Panasonic at that per-share price. The three shareholders together control about 70 per cent of Sanyo's total outstanding shares.
Panasonic had reportedly hoped to take a larger stake in Sanyo, but the company had to settle with a minimum controlling stake. Other shareholders were likely reluctant to sell with the tender offer price lower than market price.
In trading today, shares of Sanyo jumped on high hopes for its future. The issue added more than 10 per cent to 176 yen, while Panasonic fell 1.9 per cent to 1,226 yen.
