Panasonic Negotiates to Acquire Sanyo

On November 7, 2008 Panasonic ("Ideas for Life") and Sanyo (slogan: "Think GAIA") announced that they entered negotiations which can potentially lead to an acquisition of Sanyo by Panasonic to form one of the largest electrical groups in the world. Sanyo's market capitalization is currently US.9 billion and Panasonic's is US billion, combined sales are about US Billion.

The Niigata Chuetsu earthquake of Oct. 23, 2004 caused an estimated total of US Billion in damages, damaged Sanyo's semiconductor factory and contributed to large losses at Sanyo. As a consequence Daiwa Securities SMBC Co, Sumitomo Mitsui Banking Corporation and Goldman Sachs hold preferential shares in Sanyo with voting rights corresponding to 70% of outstanding shares. The current global financial crisis contributes to the potential acquisition, since Daiwa, Sumitomo-Mitsui and especially Goldman Sachs are motivated to sell their preferred shares when contractually possible, and it is also these three financial institutions which will have strong influence on whether this transaction will take place. Goldman Sachs is report to have said that the price will decide.

Sanyo is globally No. 1 in lithium ion batteries and No. 7 in solar cells, but Sanyo's financial base is currently weak. With Panasonic's financial strength expect the resulting group to become a much more powerful global force in solar energy.

The merger will also contribute to the stability of the global financial system because it will lead to cash paid to the three financial investors: Goldman-Sachs, Daiwa Securities and Sumitomo-Mitsui.