Panasonic Corp. (6752.T) and Sanyo Electric Co. Ltd. (6764.T) released details about an impending acquisition, which will create the largest Japanese electronics company.
The two companies have entered into a capital and business alliance agreement, under which Panasonic will acquire the majority of Sanyo’s voting rights. Panasonic will also assume full dilution of its shares by means of a public tender offer bid.
The companies say they will use Panasonic’s global sales platform and brand recognition to expand Sanyo’s battery and solar cell business. Organizational restructurings of both companies is likely.
Share prices of both Panasonic and Sanyo stock rose significantly on the news.
In September, Sanyo North America Corp., a subsidiary of Sanyo Electric Co., Ltd., announced plans to construct a new plant to manufacture silicon ingot and solar wafers in Oregon.
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