Panasonic, Sanyo Far Apart On Acquisition Price - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure // PC & Servers

Panasonic, Sanyo Far Apart On Acquisition Price

If combined, a Panasonic-Sanyo company would rival Japan's Hitachi, which has some $110 billion in annual sales.

Panasonic's effort to acquire Sanyo Electric broke off abruptly this week with the two sides far apart in the prices they were offering for a deal.

Sanyo shareholder Goldman Sachs walked out of negotiations, according to media reports from Tokyo.

The negotiations were followed by a wave of conflicting reports, but it was clear that Panasonic was offering far less than the Sanyo shareholders are willing to accept. Even so, an acquisition is expected to be accomplished at more than $8 billion and possibly much more, based on the reports that have swirled around the negotiations for months.

"We're no longer in talks with Panasonic on Sanyo," a Goldman Sachs spokeswoman told The Wall Street Journal. Goldman, along with Daiwa Securities SMBC and Sumitomo Mitsui Banking Co., reportedly controls about 70% of Sanyo.

If combined, a Panasonic-Sanyo company would rival Japan's current largest corporate behemoth, Hitachi, which has some $110 billion in annual sales. Particularly coveted by Panasonic for its advanced battery technology and its position in the vanguard of solar energy products, Sanyo would complement much of Panasonic's existing businesses.

While Sanyo has a long history of producing outstanding products, it began to suffer financially a few years ago and was forced to sell off some business units.

Earlier this year, Goldman pressured Sanyo's founding family to sell the company's interest in its mobile phone unit, and the deal was reported to have been carried out for a $375 million sales price to Kyocera. The acquisition catapulted Kyocera into the No. 4 mobile phone position in Japan.

Preliminary negotiations between Panasonic and Sanyo established that the strong Sanyo brand would live on in any acquisition.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll