Panasonic Corporation and Sanyo Electric Co., Ltd. have finalized the terms of Panasonic’s acquisition of Sanyo. (Earlier post.) Panasonic is launching a public tender offer at ¥131 per share of common stock and ¥1,310 per share of preferred stock, resulting in a deal worth about US$9 billion. The companies say they will form a close alliance in business with the prospect of organizational restructurings of both companies.
Batteries are one of the primary areas of benefit for Panasonic. The acquisition will, among other things, catapult Panasonic’s share of the rechargeable battery market to 38% from 10% this year, according to a Goldman Sachs analyst report. Panasonic, which currently provides NiMH packs to Toyota and is developing Li-ion packs through its PEVE joint venture, says that it will make active investments in batteries for HEVs (hybrid electric vehicle) and EV (electric vehicles).
Sanyo has established its status as a leading company in the rechargeable battery business focused on lithium-ion rechargeable batteries. In addition, Panasonic has utilized its original black box technology and expanded its business globally. By making this alliance, the companies will further strengthen both of their competitiveness through, among others, the introduction of Sanyo’s excellent production technology to Panasonic and the provision of Panasonic’s high-capacity technology to Sanyo.
...together as the Panasonic Group, it is believed that collaboration with automakers can be strengthened and sales significantly expanded.—Panasonic statement
Sanyo currently provides NiMH batteries for Ford and Honda HEVs, is co-developing next-generation NiMH systems with Volkswagen, and is also working on Li-ion systems.
Another primary area of synergy, according to Panasonic, is in solar cells. The two will expand current business in the area of highly efficient HIT (crystalline silicon) solar photovoltaic cells and modules and accelerate development and commercialization of next-generation solar cells.