Panasonic in talks on Sanyo Electric takeover

Panasonic in talks on Sanyo Electric takeover

Panasonic is in talks to acquire Sanyo Electric in a deal that would create Japan’s largest electronics group and spur consolidation of the fragmented sector.

A takeover would represent the first merger between two of Japan’s big consumer electronics groups, creating a combined company with more than Y11,000bn ($111.5bn) in revenues. It is also expected to put pressure on rivals to strengthen their core businesses.


Meanwhile, Panasonic’s move comes as Fujitsu is poised to take control of Fujitsu Siemens Computer Holding, its joint venture with Siemens, by buying the German group’s 50 per cent stake in their European personal computer business.

Fujitsu said discussions to acquire control of Europe’s biggest PC maker, with an estimated value of €1bn, were making progress although nothing had been decided yet.

The two moves reflect a broad shake-up of the Japanese electronics sector, which has seen a number of companies shed unprofitable businesses or join hands amid mounting competition from Korean and Taiwanese manufacturers.

Panasonic, which has reported a 4 per cent rise in first-half operating profit, would leapfrog Hitachi to become Japan’s leading electronics group by revenue.

Sanyo’s share price has slumped from a high this year of Y297 in May to Y145 at Friday’s close.

The company said it was considering various options but nothing had been decided. Panasonic declined to comment.

FINANCIAL TIMES