Report: Sanyo Agrees to Acquisition by Panasonic

2 November 2008

Kyodo News reports that Panasonic Corp. and Sanyo Electric Co. executives have broadly agreed that Panasonic will make Sanyo a subsidiary next spring.

Panasonic, which is expected to launch a tender offer for Sanyo shares, will announce its plan to acquire the struggling electric appliance and electronics maker possibly later this week, the sources said.

...The top officials of the two companies have also agreed in their meeting that Sanyo’s management independence will be respected, said the sources, adding the corporate and brand names will be maintained...Panasonic would secure a dominant global market share in the lithium-ion battery business and would obtain the photovoltaic cell business by acquiring Sanyo.

Both companies have significant presence in the NiMH and Li-ion automotive battery market. Panasonic EV, a joint venture with Toyota, provides NiMH packs to Toyota, for example, and is developing Li-ion packs. Sanyo currently provides NiMH batteries for Ford and Honda hybrid electric vehicles (HEVs), is co-developing next-generation NiMH systems with Volkswagen, and is also working on Li-ion systems. (Earlier post.)