Japanese consolidation
On 7th November Japanese electronics giant Panasonic announced it had started discussions with fellow Japanese electronics giant Sanyo to create a "capital and business alliance".
Later on in the announcement it was revealed the discussions were "based on the premise of making SANYO a subsidiary of Panasonic".
It seems that there are three major shareholder in Sanyo that Panasonic had to win over: two Japanese banks and US investment bank Goldman Sachs. The Japanese banks had reportedly already accepted Panasonic's offer and an improved offer reportedly finally won over Goldman Sachs.
The deal is being valued at $6.4 billion, but the only comment Panasonic will make on the reports goes as follows:
"Panasonic Corporation commented on the current press reports in Japan about TOB [take-over bid] price on possible purchase of its stake in Sanyo Co., Ltd. This announcement was not made by Panasonic, and the company has not decided anything in regards to the TOB price. We intend to announce the result promptly if any decision is made."
If the deal does go through it will apparently be the first ever acquisition of one major Japanese electronics firm by another and will create Japan's largest electronics company - with particular strength in flat screen TVs.
