Panasonic is buying Sanyo for its green technology.
Japan’s largest electronics maker, already has a 50 percent stake in Sanyo Electric and will take 100 percent of Sanyo by April. At the same time, Panasonic will buy Panasonic Electric Works, another company in which it owns a 51 percent stake. The two will be purchased through a public tender offer valued at $9.4 billion.
Sanyo, although a money losing business, has a strong battery and solar panel business, said Forbes, noting Panasonic president Fumio Ohtsubo has repeatedly stated that the ecology business, including solar panels for homes will be the foundation of Panasonic going forward.
Panasonic also reported much improved earnings for the April-June quarter. Profits totaled about 44 billion yen ($502 million) compared to a loss of 53 billion yen last year.
Quarterly revenue surged 35 percent to 2 trillion yen ($25 billion) due to improved sales in flat-panel TVs, Blu-ray recorders, air conditioners, rechargeable batteries, semiconductors and solar panels.
The company raised its forecasts for the full year through March 2011 to an 85 billion yen profit compared to 50 billion yen predicted earlier.
Source: Forbes
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