Talked about here before and finally done: Another mega merger: Panasonic and Sanyo, both vacuum players, but not the reason for the merge.
An internet search reveals the news if interested. As always the WSJ covered the story.
Panasonic made a $4.45 BILLION bid for Sanyo to give the Japanese companies, after the merge, 3 promising environmental businesses: solar panels, fuel cells and rechargeable batteries for hybrid and elctric vehicles. The merger is obviously a venture to grow/transform the new company into a green-enregy powerhouse. Why? The Japanese consumer-electronics makers are struggling to make money on household goods like television sets and DVD players amid intense competition from South Korean rivals.
World-wide regulatory and antitrust authorities are expected to give the 'green' light to allow the companies to go ahead with the merge. The combination of the companies will create the leader in rechargeable batteries, especially for nickel-metal hydride batteries, which are used in hybrid vehicles from Toyota, Ford, and Honda. Together Pano and Sanyo account for most of the batteries currently used in hybrid cars. It also better positions the 2 companies in the lithium-ion battery businesses, the technology expected to underpin the next wave of batteries for hybrid and electric vehicles. The 2 companies account for 30 percent of the all production capacity.
Carmine D.
