panasonic, sanyo shares soar - lithium ion battery for solar street light
TOKYO-reports from Panasonic
It is about to acquire the smaller rival Sanyo Electric Company.
Shares of the two companies soared in Tokyo on Tuesday, sparking speculation that Japan's competitive electronics industry could face consolidation.
The deal, if implemented, will provide a lot-
Goldman Sachs needs cash. of the U. S.
Along with Bank of Japan Sumitomo Mitsui
Daiwa Securities SMBC invested 300 billion yen (US$3 billion)
In Sanyo in 2006.
Adding Sanyo to Panasonic will surpass Hitachi as Japan's largest electronics manufacturer.
Become one of the largest countries in the world.
As there is growing interest in green energy, Sanyo's solar panel business could become an asset to electronics giant Panasonic.
Panasonic changed its name from Panasonic appliance industry to Panasonic appliance.
Last month, it was the leading maker of tablets.
Flat screen TV, digital camera and DVD player.
The powerful lithium of Sanyo
Toyota's ion battery business is another gem of Panasonic, and Tatsuya Mizuno, director of Fitch Ratings in Tokyo, said Panasonic wants to combine with its own battery business to be global.
However, due to inefficiency and overlap, Sanyo's electrical sector could become a burden for Panasonic, he said.
"There is a plus sign and a minus sign, but people today only look at the plus sign," he said . ".
Sanyo's share price has fallen third in the past two months, giving Panasonic an opportunity to take advantage of the recent slump in Tokyo's stock market to acquire a smaller company.
On Tuesday, the demand for Sanyo shares was so big that it was bid-only 195 yen ($1. 96)
Finished at this price.
Closed Friday, 145 yen ($1. 46).
Panasonic also rose, up 6.
1,614 to yen ($16).
Japan's largest business newspaper, Nikkei and Kyodo news agency, reported on Saturday that the two companies were negotiating deals.
The stock market was closed on Monday due to the National Day holiday, so Tuesday was the first day for investors to buy and sell stocks.
Officials from Panasonic and Sanyo on Tuesday denied any agreement had been reached.
But the deal will also benefit financial companies holding shares in Sanyo, which are under pressure in the global financial crisis.
According to Sanyo, Goldman Sachs and two Japanese finance companies hold shares in Sanyo if their preferred shares are converted into ordinary shares.
Buffett's Berkshire Hathaway, September
The company said it would invest at least $5 billion in Goldman Sachs.
In an agreement designed to shore up bank balance sheets and reassure creditors.
Last week, Sumitomo Mitsui Financial Group lowered its profit forecast for the fiscal year ended March 2009 by 63.
Koya Tabata, an analyst at Credit Suisse in Tokyo, said he was monitoring whether Panasonic had completed an acquisition study.
One of the risk factors, according to his report, is that the recent economic slowdown could lead to an oversupply of Sanyo batteries and other products, while the Sanyo battery and solar cell business could help Panasonic to be more competitive.
Panasonic and Sanyo, located in Osaka, central Japan, have a long history.
The founder of Sanyo is a brother. in-
Panasonic founder Matsushita law.
Although such relationships may not directly affect the outcome of the transaction, they may help to acquire more smoothly due to shared corporate culture.
In recent years, Sanyo has been working to reverse the situation, cutting unprofitable businesses and cutting jobs to focus on core businesses including batteries and solar.
It turned losses into profits in the fiscal year, the first time in four years.
Sanyo, which was due to announce its earnings on Wednesday, was hurt by a 2007 accounting scandal that involved falsifying past gains and reporting profits when it lost money.
The scandal forced the reshuffle of its top management.
Sanyo also suffered a magnitude 2004 earthquake near the chip. making plant.
Compared with Japanese competitors such as Sony, Panasonic has performed relatively well in the appreciation of the yen, because Panasonic is less dependent on foreign sales.