Japanese electronics giant Panasonic has announced it has begun the takeover of its smaller rival Sanyo.
Panasonic is to buy more than half of Sanyo’s shares in a deal worth 402 billion yen (US$4.4 billion).
Panasonic said the move to acquire Sanyo resulted from the increasingly competitive business environment the two companies are operating in, and the realisation that it is becoming increasingly difficult to sustain growth in the current market alone.
Sanyo’s attraction for Panasonic lies in the fact it has a large global market share, and is well-established as a leading global company, in the lithium-ion battery business.
Sanyo is also involved in co-developing its lithium-ion battery business for hybrid-electric vehicles and electric vehicle, an area in which, Panasonic said, rapid market growth is expected in the future.
Subject to the approval of competition authorities, Panasonic expects to close the deal on 21 December, 2009.
Article courtesy of businessandleadership.com