Panasonic Corp said on Wednesday it will take a 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 a 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.
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 reluctant to sell with the tender offer price lower than market price.