Sanyo surges 26 percent on Panasonic report
Electronics maker Sanyo surged 26 percent in morning trade on the Tokyo stock exchange Thursday, following reports Panasonic planned to buy out the remaining shares of its majority-owned subsidiaries.business Updated: Jul 29, 2010 11:26 IST
Electronics maker Sanyo surged 26 percent in morning trade on the Tokyo stock exchange on Thursday, following reports Panasonic planned to buy out the remaining shares of its majority-owned subsidiaries.
Panasonic Corp. plans to spend at least 8.4 billion dollars to buy out Sanyo Electric Co. and Panasonic Electric Works Co., converting them into wholly-owned units, Dow Jones Newswires reported.
In December Panasonic secured a controlling stake in its smaller rival in a deal that revamped Japan's troubled electronics industry.
By doing so, Panasonic gained access to Sanyo's coveted environmental technologies such as rechargeable batteries -- seen as a promising sector given growing concerns about global warming.
The company now aims to shift its focus from home electronics -- which faces increasing competition and shrinking margins -- to the fast-growing and lucrative renewable energy and energy conservation business.
An announcement on the deal could come as early as Thursday when Panasonic reports its quarterly earnings, the report said. A spokesman for the firm said nothing had yet been decided.
Sanyo surged by 26.27 percent to 149 yen in Thursday trade. Panasonic Corp fell 5.39 percent on worries that it would have to raise capital for the move, possibly resulting in a share dilution.