Panasonic reportedly to buy Sanyo

The Yomiuri Shimbun - http://www.yomiuri.co.jp/dy/business/20081102TDY01304.htm

OSAKA--Panasonic Corp., the world's largest maker of consumer electronics, has reached a broad agreement to purchase Sanyo Electric Co. and make it a subsidiary, possibly in April 2009, sources said Saturday.

Panasonic obtained agreement on the acquisition plan ahead of full-scale negotiations, expected Monday at the earliest, to obtain the right to buy Sanyo's preferred shares now held by its major shareholders--Goldman Sachs Group Inc. and two other financial institutions.

The agreement between the two leading consumer electronics firms means Sanyo will almost certainly become a subsidiary of Panasonic in April 2009.

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By acquiring Sanyo, Panasonic aims to spur technological expertise in manufacturing solar batteries, rechargeable batteries and other fields.

Sanyo is strong in the photovoltaic cell business and also has the world's largest market share for lithium ion batteries, which hold growth potential as carmakers move to develop gas-and-electric hybrid cars.

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