A statement said that Panasonic and Sanyo will form a close alliance in business with the prospect of organisational restructurings of both companies.
Panasonic aims to commence the tender off as soon as is practical. The purchase price upon the Tender Offer will be 131 yen ( GB pound 0.98p) per share of common stock, and 1,310 yen ( GB pound 9.83) per share of Class A preferred stock and Class B preferred stock.
“Panasonic and Sanyo recognise that existing strategies must not only be accelerated, but also that drastic action is now required for further strengthening initiatives to achieve potential revenue and profit growth in the global economic recession stemming from the financial crisis as well as in the midst of intensified global competition,” the statement said.
“Combining the accumulated technologies and manufacturing knowledge of both companies, Panasonic and Sanyo believe that together they will evolve into a corporate group which will be highly admired globally by enhancing the quality of life for the people worldwide and becoming a business entity coexisting in harmony with the global environment.
“This will be done with the aim of maximizing both companies’ corporate values by pursuing synergies between both companies further strengthening global competitiveness through this alliance.”
Areas of collaboration
Major areas of collaboration between the two firms will be the solar power business, and rechargeable battery business. They also anticipate reductions in procurement and logistics costs and introducing Panasonic cost reduction methods to Sanyo.
The two companies will also set up a ‘Collaboration Committee’.
The statement says: “The said committee shall consider, to the extent permitted under the applicable laws and regulations, various items, such as management systems, technology development, procurement, logistics, quality control and IT infrastructure, in order to achieve the outcomes of collaboration between the two companies as soon as possible after making Sanyo a subsidiary of Panasonic.
“In addition, Panasonic will consider various options including a possible investment of around 100 billion yen in order to achieve the synergy of both companies.”