Venerable Japanese consumer electronics brands Panasonic and Sanyo are set to become one as Panasonic announces the result of a tender offer made five weeks ago, in which it will pay 404 billion yen - around $4.6 billion - for 50.19 percent of Sanyo.
This move has been a work in progress for over a year as Panasonic has struggled to resolve negotiations with the three banks, including Goldman Sachs, who currently own Sanyo. It looked like the deal was going to get done late last year, but it's obviously dragged on.
In documents explaining the rationale behind the move, Panasonic has spoken trying to unite its disparate operations under a stronger Panasonic brand. The corporate mantra these days seems to be: "We are committed to becoming an indispensable element in the lives of people all over the world". There's nothing like aiming high.
It also talks about the challenges faced by Sanyo of late, including a 2004 earthquake, which have made its financial position difficult. It acknowledges the tough financial environment we're in and seems to think that a larger companies, with greater economies of scale, it more likely to be able to ride out the storm.