Panasonic Buys Shares of Sanyo, Electric Works
Panasonic Corporation, which is the largest manufacturer of rechargeable batteries in the world, spent $6.4 billion to boost their stake in Sanyo Electric Co. and Panasonic Electric Works Co. in a move designed to expand their involvement in energy-related business.
In a statement released Thursday, Panasonic reported that they now control just under 81 percent of Sanyo and almost 84 percent of Electric Works. The statement announced the two stock purchases, which closed on Wednesday. The company had previously held 50 percent of Sanyo and 51 percent of Electric Works.
Panasonic President Fumio Ohtsubo hopes the moves will allow the company to move forward with a plan to expand in the sectors of energy storage and solar power systems as their competition, mainly from Samsung Electronics Co., grows in the area of television manufacturing. Panasonic shares dropped by 1.3 percent and Sanyo and Electric Works shares were unchanged in trading that concluded before the acquisition was announced.
The world's largest manufacturer of plasma televisions, Panasonic paid 138 yen apiece for 1.89 billion shares of Sanyo, and 1,137 yen per for 238 million shares of Electric Works. The company will use available cash and short-term loans to fund the stock purchases. The company intends to acquire all shares of the two companies through share swaps. Shareholders of Sanyo and Electric Works stock will be given the option of either accepting a cash offer from Panasonic or trading their shares in for shares of Panasonic, the statement said.