Panasonic buys Sanyo

For a slick 9 billion, Panasonic is set to acquire Sanyo in a move that is sure to position them well as one of the top electronics manufacturers. The deal will be finalized in April 2009, creating a combined revenue of $1.1 billion. Panasonic plans to keep the Sanyo branding separate and continue to grow in the consumer market. According to Panasonic President Fumio Ohtsub, “taking over Sanyo will provide an opportunity for Panasonic to become more competitive to ride out the worsening global downturn. The alliance with Sanyo will provide an engine for growth for us.”

“This is opening a way to fight these tough times that come only once in a 100 years,”Sanyo President Seiichiro Sano told reporters. Sanyo’s green businesses in solar panels and rechargeable batteries has been struggling, and this would allow Panasonic to revamp the gameplan to bring Sanyo back into the forefront. Sanyo shares dipped 3.6 percent to 136 yen ($1.50) while Panasonic shares gained 2.9 percent 1,051 yen ($11.8). Panasonic will be purchasing Sanyo shares for 131 yen ($1.49) through a tender offer in February.

Yahoo! News picked up the story

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