TOKYO (AP) — Panasonic has begun a 800 billion yen ($9 billion) takeover of Japanese rival Sanyo, hoping that transforming into one of the world's biggest electronics companies will help it weather the toughest business conditions in a century.Top shareholders, including Goldman Sachs, had been haggling over the price with Panasonic Corp. since it expressed interest in Sanyo last month, but Friday revealed they'd settled on a tender offer price of 131 yen ($1.47) a share.
The deal would also allow Panasonic, which makes Viera TVs and Diga Blu-ray disc players, to take advantage of struggling Sanyo's green businesses in solar panels and rechargeable batteries.
Panasonic President Fumio Ohtsubo said that taking over Sanyo will provide an opportunity for his company to become more competitive to ride out the worsening global downturn.
"The alliance with Sanyo will provide an engine for growth for us," he said at a news conference in Osaka, central Japan, shown via satellite in Tokyo.
Sanyo President Seiichiro Sano told reporters that the deal "is opening a way to fight these tough times that come only once in a 100 years."
Daiwa spokesman Kenichi Kanda said the company viewed the bid favorably, welcoming the Panasonic-Sanyo alliance "as boosting the companies' value and being positive for the Japanese economy."
Sumitomo Mitsui also said it was moving toward accepting it, evaluating the planned alliance as a good one.
Sanyo shares dipped 3.6 percent to 136 yen ($1.50) while Panasonic shares gained 2.9 percent 1,051 yen ($11.8). The companies announced the tender plans shortly after trading ended in Tokyo.
Associated Press writers Shino Yuasa and Mari Yamaguchi contributed to this report.
